One off large lump sum Salary Sacrifice 25k (wages have already been paid)

Just a couple of things to note

1.The cap that applies to concessional super contributions this financial year is $27500

Note that SGC and sal sac contributions make up this type of contributions and as your employee is awaiting advice from his accountant on the amount to sacrifice given the 10% SGC would be $9900 then he would not be able to contribute more than $17600

2. The salary sacrifice contribution once recorded in MYOB needs to be lodged and paid to the super fund before 30 June 2022 to allow the deduction in this financial year. I mention this because , if you pay super quarterly the next contribution payment would be made in July 2022 and therefore miss the recording of the contribution for this financial year

As far as the processing of the salary sacrifice , you are going to process the salary sacrifice in a stand alone payrun. Assure that no leave is accrued or other super recorded also.

The reason for this is to just record the salary sacrifice and the PAYG saving so that the liability for the super is both recorded to the ATO and also in MYOB so that you can track and pay it. It also amends the PAYG YTD figure reported to the ATO . ( amending the payment summary for the employee)

To determine those amounts it is necessary to calculate the change in PAYG due to the salary sacrifice contribution.

I will attach a file with screen shots to show you how I have done this.

You need to have created a salaray sacrifice payroll category and linked your employee to it first.

So the givens are that you pay monthly therefore 12 pays

I have used the gross monthly pay of 8250 and the PAYG figure of 2413 that you provided. Net $5837

Salary Sacrifice - I will use the $17600 contribution as an example but you can substitute any amount you wish.

All you need to do is to calculate a monthly figure for that amount

eg 17600 / 12 =1466.66

So you would go into process pays and select to pay an individual and select the employee you want

This will bring up the usual pay

You will then input the monthly salary sacrifice amount ( in this instance   -$1466.66 ) and note the results to the change in PAYG 

In my example the PAYG has gone from $2413 to $ 1910 a saving of $503 a month.

The stand alone transaction is based on the whole 12 months ( this means that there are no adjustments to be made to following pay runs and they can be recorded as usual.

Therefore the stand alone transaction is :

Salary Sac -$ 17600

PAYG $6036

Amount to take back from employee loan  $11564

When the pay is processed it is a negative amount . It asks for a spend money , just ignore that for the time being.

Once you have completed the payrun and the reporting to the ATO you can then do the transaction to recoup the money for the loan

MYOB has produced a transaction to the linked account for cash payments ( I imagine it to be the usual bank account)

So you will need to do a journal putting that transaction to the employee loan account

DR Bank Account   $ 11 564 Tax code  N-T

CR Employee loan account $ 11564 Tax code N-T

Hope this is clear enough and helps

Lisa