Forum Discussion

Kate_Beaumont's avatar
Kate_Beaumont
Contributing User
2 years ago
Solved

Salary Sacrifice amount included in gross wages - how to fix at end of year

Just about to finalise end of year STP reporting and found that the amount salary sacrificed through the year for 2 employees has not deducted from the gross wages as it should have. This is non supe...
  • gavin12345's avatar
    gavin12345
    2 years ago

    Hi Kate_Beaumont  and Alby97 

     

    If you check the ATO website for STP Phase 2 - salary sacrifice, you will see that Gross Amount must now be the pre-salary sacrifice gross amount as this is what SG should be based on. The ATO will deduct the Salary sacrifice amount from the Gross Amount to arrive at the correct Taxable Income. This is one of the many differences in Phase 2.

     

    Regards

    Gavin

gavin12345's avatar
gavin12345
Ultimate User

Hi Kate_Beaumont  and Alby97 

 

If you check the ATO website for STP Phase 2 - salary sacrifice, you will see that Gross Amount must now be the pre-salary sacrifice gross amount as this is what SG should be based on. The ATO will deduct the Salary sacrifice amount from the Gross Amount to arrive at the correct Taxable Income. This is one of the many differences in Phase 2.

 

Regards

Gavin

KSG55's avatar
KSG55
Cover User
2 years ago

Is the salary sacrifice amount still meant to be listed as 'not reportable'? 

  • Kate_Beaumont's avatar
    Kate_Beaumont
    Contributing User
    2 years ago

    For STP2 found had to change the category from not reportable to the new category of Salary Sacrifice - Other Employee Benefits for it to appear on the report. This category includes Salary Sacrifice for those exempt from FBT.

    • KSG55's avatar
      KSG55
      Cover User
      2 years ago

      Thank you.

       

    • SPAADM1N's avatar
      SPAADM1N
      Contributing Cover User
      2 years ago

      Hi

      So to fix the problem, do we change it from non reportable to Salary sacrifice?

      • Tracey_H's avatar
        Tracey_H
        Former Staff
        2 years ago

        Hi SPAADM1N 

         

        In STP Phase 2 the gross payments amount is not reduced by salary sacrifice as per the change to the ATO reporting requirements. Salary sacrifice should be reported by assigning the relevant salary sacrifice ATO reporting category: Assign ATO reporting categories

         

        Please let us know if you need further help.