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Salary sacrifice computer purchase

MV-8

Hi there,

We have a staff member who wanted to salary sacrifice a laptop purchase. From my understanding, this arrangement is exempted from FBT and the payroll will be processed as:

- PAYG withhold is calculated based on the reduced gross wages

- what about the 9.5% superannuation guarantee? Do I calculate the SGC based on the normal gross wage or reduced gross wage?

Really appreciate your help and input.

Cheers. M

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Accepted answers

Melisa_D

Hi @MV-8,

Generally super is calculated on the gross ordinary time earnings, as salary sacrifice is not an ordinary time earning it is not included in super calculations. I do recommend following the steps on our help article Salary sacrifice (employee purchase) on how to set up the salary sacrifice, the software will then calculate Super as per the set up.

Please do let us know if you have any further questions.

All comments

MV-8

Hi Melisa,

Thanks for the reply.

So essentially, if the normal fortnightly pay is $2,500, and for that same pay period, although the salary was reduced by $500 due to salary sacrifice computer purchase, the superannuation guarantee will be still calculated based on 9.5% x $2,500 - is that right?

Thanks again.

Cheers.

Melisa_D

Hi @MV-8,

Thank you for your post. Superannuation guarantee is paid on top of employee's wages, this is 9.5% of an employees ordinary time earnings. More information on this can be found on the following ATO link Ordinary time earnings and super guarantee - examples.

Additionally our help article Salary sacrifice (employee purchase) has information that may be helpful.

Please do let me know if you have any further questions.

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.