setting up super contributions

setting up super contribution tax tracking type in super contributions payroll item
I am not sure which one to select??

Fiona Papworth

170 Points

Posted 12 months ago

12 months ago

John Graetz

16,316 Points

Fiona. If you are referring to SGC payments then you select None. Nobody pays tax on the SGC that an employer is required to pay.
If you are referring to Salary Sacrifice Super, then you need to select Gross Payments. The reason for doing that is that SS Super is deducted from pre tax earnings and so it needs to come off Gross Payments.
John L G

Comment

12 months ago

Kevin Russell, Accredited Partner

35,092 Points

John the employee pays tax on sgc contributions at the rate of 15%.

Comment

12 months ago

John Graetz

16,316 Points

That is correct Kevin, when received by the Super Fund, but there is no tax applicable for SGC for setup within Payroll, which is what the question related to, hence the reason for my response. Thank you for clarifying the fact.
John L G.

Comment

setting up super contributions

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