EOFY and Salary Sacrifice

[anneacc]

In my Employee's YTD verification report - Summary of Payments,

Gross payments amount is including their Salary Sacrifice amount.

Salary Sacrifice super is also reported separately as Salary Sacrifice RESC.

Will their "Payment Summary" reduce the Taxable income by the Salary Sacrifice amount?

[gavin12345 · Accepted solution]

Hi @anneacc 

Yes this is how it works for STP Phase 2.

Regards

Gavin

[Chamberlain]

Hi 

I have employees with both Salary Sacrifice super contributions and salary sacrifice payments as a NFP employee.

Are you able to confirm that the same process occurs for these types of payments also?

Thanks for sharing your expertise.

[gavin12345]

Hi @Chamberlain 

Generally the same applies to other Salary Sacrifice as well, gross amount is the pre-salary sacrifice amount.  The salary sacrifice is then reported as a positive figure, and the ATO will deduct this when calculating Total Gross Amount on the Income Statement.

The only difference is the other salary sacrifice is not RESC (as super is) and may be RFBT instead.

With some NFP sectors, there are different rules for reporting some not wage benefits, so this is best checked with your tax adviser.

Regards

Gavin

[juliehiggins]

Hi @gavin12345 Gavin

Seems like you have some experience with FBT and not for profits.  Tax office isnt much help and i really need to finalise my EOY.  Would you be able to offer some advice over the phone?

[gavin12345]

Hi @juliehiggins 

Sorry, I do not have any experience with the NFP sector. However I do know that some have specific FBT rules that can be complex. Some NFPs are exempt from some  FBT types, but may still need to report, etc. Best to speak to a tax adviser who specialises in that sector.

Regards

Gavin