One off RESC payment to show on payrment summary

  • 1
  • Question
  • Updated 11 months ago
  • Answered
Hello does anyone know how to enter a RESC payment from the employer which is a one off payment at yr end?  I am using Reckon Hosted.  I have tried lots of different ways but cannot just make a super payment on its own without putting a gross figure in the wages.  There must be a way I havent thought of. 
Photo of Pam

Pam

  • 512 Points 500 badge 2x thumb

Posted 12 months ago

  • 1
Photo of John Graetz

John Graetz

  • 16,316 Points 10k badge 2x thumb
Hi Pam.  I think that you must refer this to your tax advisor as I don't think that an employer can make an RESC payment.  Rather this sounds like an employer above SGC payment for which there is a special code and which needs to be reported specially on Payment Summaries.  There was a discussion on this forum about this about a week ago.  For your info, this is what the ATO says about salary sacrificing super which is an arrangement relating to future earnings:
"A salary sacrifice arrangement is also commonly referred to as salary packaging or total remuneration packaging. It is an arrangement between an employer and an employee, where the employee agrees to forgo part of their future entitlement to salary or wages. This is in return for the employer providing them with benefits of a similar value".  
Your query does not seem to relate to future earnings.
John L G
Photo of Kevin Russell

Kevin Russell, Accredited Partner

  • 35,092 Points 20k badge 2x thumb
RESC are payments made at the EMPLOYEE'S election. Its a precondition. John is right. You need to consult the accountant
Photo of Pam

Pam

  • 512 Points 500 badge 2x thumb
Hello everyone thankyou for your replies.  Ill explain further then, the employee is the employer the sole director in his own Pty Ltd company) and the accountant took back the wages and payg already paid and made the wages a base wage for the year.  This left me with a load of super that has already been paid and when I adjusted the wages the super of course disappeared and left me with paid super and no expense/liability to put it to.. so it is an agreed arrangement, and not a salary sacrifice, but I would like it to display on the ledgers correctly, having done this in other programmes as well, but Reckon doesnt seem to have the ability. .  
Photo of Kathryn

Kathryn

  • 200 Points 100 badge 2x thumb
I am having the exact same problem and am trying to get to the bottom of this also Pam, can anyone help please
Photo of Kevin Russell

Kevin Russell, Accredited Partner

  • 35,092 Points 20k badge 2x thumb
Its still salary sacrifice and it is still paid by the employee. And it should appear in the RESC box if it is in excess of the award super. You can enter this via payroll.
Photo of John G

John G, Information Support Analyst

  • 25,360 Points 20k badge 2x thumb
Hello Pam and Kathryn,

Under normal super guarnatee guidelines you will need to give the director a pay (Additional Payroll item perhaps) and then include a Super Salary Sacrifice at 100%.

If there is another category under which this Super Salary Sacrifice is given to the director, then you should speak with your accountant.  Reckon Accounts cannot handle Super reporting outside the normal super guarantee process.

regards,
John
Photo of Kathryn

Kathryn

  • 200 Points 100 badge 2x thumb
Thanks, have spoken with Accountant and problem fixed
Photo of Pam

Pam

  • 512 Points 500 badge 2x thumb
Hello John yes thankyou for reply -  I downloaded a document of yours from some time ago and set it up, although it was a good guideline, I still required help from support to do the intricacies like showing separately on the P/L and balance sheet for a good audit tracker.  All done and all good.  Kathryn I did have to make a payroll item and set it up appropriately as said, with help from document and support and the payment summary came out as it should have.  Just go slowly as there is a lot of matching and joining to do to make it show correctly if you want it to show in P/L and Balance Sheet
Photo of John G

John G, Information Support Analyst

  • 25,360 Points 20k badge 2x thumb
Hi Pam,

Good to hear that you have your accounts showing what you need.  

I am intrigued though, did not the additional payroll item used to give the Director a pay from which you took out the Super Salary Sacrifice not show up in your Profit & Loss?


regards,
John
Photo of Pam

Pam

  • 512 Points 500 badge 2x thumb
Hi John I was mulling over your question for a couple of days as I think in your intrigue question there is one too many nots in the sentence. So Ill answer as best I can.  Yes the salary sacrifice did show up in P/L as I set it to show separately.  My end of year worked and balanced perfectly.