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Waddy's avatar
3 months ago

salary sacrifice

salary sacrifice for superannuation not showing as tax free in a A T O

 

1 Reply

  • Earl_HD's avatar
    Earl_HD
    MYOB Moderator
    3 months ago

    Hi Waddy,

    Salary sacrifice contributions to superannuation are generally tax-free for the employee because they are deducted from their gross salary before tax is calculated, (please see this help page Superannuation). You should set up the salary sacrifice as a "Salary Sacrifice" deduction in the payroll, which is designed to automatically process this tax-free deduction. If it's not showing as tax-free, ensure the deduction is set up correctly and not mistakenly classified as a taxable income deduction. 

    I hope this helps!

    Regards,
    Earl

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