Tax/BAS/GST

[#1]

We have an employee in our company who is now over 60 YO and has his own self managed superfund.

As such he is now legally  entitled to put up to $50,000 per annum into that  Superannuation account (including personal contribution plus Our company's contribution) and withdraw it as a PENSION as it hits the account  – only ever paying 15% tax.

I am hoping someone can help me to work out how I can;

1. change his tax rate to 15%

2. set up the self managed super fund in MYOB to reflect the payments correctly. 

Regards,

Gemma

[#2]

Hi

Nothing to do with his tax rate - any of his pay he wants to contribute to super is done as Salary Sacrifice Superannuation.  That is allocated to a liability account and is paid just like the other super.  You are not obliged to send the money to the super fund every pay period.  The super fund does the withholding of the 15%, not you.  He has to setup the superfund in MYOB or whatever software he uses and do the accounting, you don't.

Regards

Clive Williams

[#3]

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Clive wrote:

Hi

Nothing to do with his tax rate - any of his pay he wants to contribute to super is done as Salary Sacrifice Superannuation.  That is allocated to a liability account and is paid just like the other super.  You are not obliged to send the money to the super fund every pay period.  The super fund does the withholding of the 15%, not you.  He has to setup the superfund in MYOB or whatever software he uses and do the accounting, you don't.

Regards

Clive Williams

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Further To Clive's comments. Just be careful. In Victoria, at least, I believe  the payments are subject to Workcare Insurance and Payroll Tax (if your wages  are above the threshold)

Bob

[#4]

Gemma,

Obviously this is the first time you've had this type of transaction to record. Clive has already told you that all you do is to record the salary as Superannuation and that the management of the employees Fund is his responsibility.

I'd work out how you are going to do it and run it past your Accountant so that what you are going to do is correct. The first one is always messy as it quite different to what you are used to doing.

Bob