Salary Sacrifice not deducted from Gross Payments

Question

When preparing STP finalisation, I note that Gross Payments amount on Summary of Payments includes salary sacrificed superannuation amount.  If this amount was to flow through to ATO pre-fill, it would result in the employee being taxed on amounts that were sacrificed.  Is there a fix for this?

Genreve_S · Answer

Hi @Simtom,

Thanks for clarifying your Salary Sacrifice setup. The link says it is to be set up under Superannuation, with the contribution type Salary Sacrifice (deduction).

If that’s already how it’s set up, the next thing to check is whether the correct salary sacrifice pay item was used in the processed pay. If a different pay item was used by mistake, the pay may need to be reversed and redone so it reports correctly.

If that still doesn’t change anything, I’d recommend reaching out to support. You can do that by creating a ticket in My Account or by using our live chat team through MOCA, our virtual assistant.

Regards,
Genreve

Simtom · Answer

Thank you for your response.  The client has setup the Salary sacrifice in accordance with MYOB instructions:

Set up salary sacrifice superannuation

MYOB's own instructions show the sacrifice amount as a Deduction, not under superannuation as you refer to.

How do we fix this so that the correct amounts get sent to ATO?

Princess_R · Answer

Hi @Simtom,

Great question! The salary sacrifice amount only ends up included in Gross Payments if the pay item was set up under deductions instead of being set up properly under superannuation. If it’s been configured that way, MYOB can report it as part of gross instead of showing it separately like it should. So it’s worth checking how that salary sacrifice pay item was created, because if it’s sitting under the wrong category, that would explain why it’s flowing through to Gross Payments. It’s also a good idea to compare the YTD verification, Payroll Activity, and Payroll Register reports. If those all match up, that’s usually a good sign the figures being reported are correct.

Cheers,

Princess