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

[Kate_Beaumont]

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 superannuation salary sacrifice. Appears that the deduction has been included in the tax calculation. I have updated so that it is compatible with STP 2 with the new required category as opposed to not reportable. I have updated the category to show the deduction is not included for taxation purpose and then done a 0.00 pay run for the employee but it has not corrected. Can anyone suggest a fix for this. 

[Kate_Beaumont]

Have managed to fix - apologies but unsure how to delete this matter. 

[Kate_Beaumont]

I misspoke yesterday and whilst I have managed to get the salary sacrifice to now appear it is not as a negative figure on the individual's details and has not reduced the gross amount on the STP report. Is there a way to fix this?

[Alby97]

I am having the same issue - my salary sacrifice contributions are showng in gross wages.  Have you managed to fix yours?

[Kate_Beaumont]

Sorry but have not found a solution. Spent a bit of time on the phone with MYOB and they have escalated it to look at in the back end. Not sure if you have shifted to STP2 or not as yet? I was doing end of year for one which is still STP1 which worked perfectly, not so the one that has been moved to STP2.

[gavin12345 · Accepted solution]

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

[Kate_Beaumont]

Thank you so much gavin12345 for your response. You have saved my bacon. I will contact MYOB in the morning.

[Alby97]

Thank you so much Gavin, problem now solved.

[KSG55]

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

[Kate_Beaumont]

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.