Salary Sacrifice

Contributing Cover User Deryk
5 Posts
Contributing Cover User
Australia
Solved: Go to Solution

Salary Sacrifice

Good afternoon,

I am trying to set up salary sacrifice for a staff member.

I have gone into the payroll category, selected supper tab, then selected new. Gave it the name of salary sacrifice.

It then asks for " Linked Expense Account" and " Linked Payable account".

Do I have to set up an expense account called " Salary sacrifice" ?

And what would be the " Linked Payable account"?

 

Thanks

Deryk

5 REPLIES
Ultimate Partner ronatbas
3,608 Posts
Ultimate Partner
Australia

Re: Salary Sacrifice

@Deryk

 

Open your new super tab and use the dropdown beside Contribution type and select Salary Sacrifice (deduction)  the screen will reset with no expense account. The liability account should be your #2- xxxx Super Payable.

Ron B
BAS Group
03 95588477

info@basgroup.com.au
Making MYOB work for you
Contributing Cover User Deryk
5 Posts
Contributing Cover User
Australia

Re: Salary Sacrifice

Thanks for that.

 

Couple more questions.

1. In the employees standard pay, is the salary sacrificed amount entered as a minus amount?

2. Will this now automatically reduce gross by the salary sacrificed amount before tax?

3. I believe salary sacrifice has to show on payment summaries. Do I have to do anything else to make this happen?

4. When I run Bas or PAYG at the end of month in MYOB, do I have to manually delete the salary sacrifice amount from gross when I am entering the amount into W1 in the ATO portal, or does MYOB automatically reduce the gross down by the sacrifice amount?

Thanks again

Deryk

Ultimate Partner ronatbas
3,608 Posts
Ultimate Partner
Australia

Re: Salary Sacrifice

@Deryk

 

 

 

1. In the employees standard pay, is the salary sacrificed amount entered as a minus amount?

Yes this happens automatically

2. Will this now automatically reduce gross by the salary sacrificed amount before tax?

No, the gross will still appear as the true Gross. There is a legal requirement  that a payslip must show the amount earnt.

3. I believe salary sacrifice has to show on payment summaries. Do I have to do anything else to make this happen?

When you come to do payment summaries there is a section that asks about Reportable Employee Super Contributions. You link the Salary Sacrifice at this point and it will appear on the Payment Summary

 

 

4. When I run Bas or PAYG at the end of month in MYOB, do I have to manually delete the salary sacrifice amount from gross when I am entering the amount into W1 in the ATO portal, or does MYOB automatically reduce the gross down by the sacrifice amount?

It does not happen automatically and you do need to subtract the Salsac (which appears under deductions on the Activity statement) from the Gross 

 

 


 

Ron B
BAS Group
03 95588477

info@basgroup.com.au
Making MYOB work for you
Contributing Cover User Deryk
5 Posts
Contributing Cover User
Australia

Re: Salary Sacrifice

Thanks a lot.

 

I probably didn't phrase question 2 properly. To re-phrase, does MYOB automatically calculate the correct tax ie Gross minus salary sacrifice then the tax is calculated at the "internal reduced gross"

Regards

Deryk

 

Ultimate Partner ronatbas
3,608 Posts
Ultimate Partner
Australia
Accepted Solution Solved Solution

Re: Salary Sacrifice

@Deryk

 

The deduction is pre tax so it takes the amount off the Gross and calculates the tax on the remainder.

Ron B
BAS Group
03 95588477

info@basgroup.com.au
Making MYOB work for you
Didn't find your answer here?
Try using advanced search to find a post more easily Advanced Search
or
Get the conversation started and make a new post Start a Post