Salary Sacrifice Super add to Gross Earnings
Hi guys,
If I am missing something please let me know otherwise I think there may be a significant issue in People.
We are trying to set up Salary Sacrifice Super to be liable for SGC but it is not calculating SGC on the SS Deduction.
There was a change on 01/01/2020 that says that SS Super IS liable for SGC. So if an Employee receives $1000 gross they should still get $95 SGC even if they Salary Sacrifice $100. Currently People appears to only calculate the SGC on the $900 and $85.50 SGC.
Super guarantee
Your salary sacrifice contribution is counted towards your employer contributions.
Therefore, salary sacrificed super contributions are generally taxed concessionally at 15% in the super fund.
From 1 January 2020, salary sacrificed super contributions will not:
- reduce the ordinary time earnings your employer is required to calculate your super entitlement on
- count towards the amount of super guarantee contributions that your employer is required to make for them to avoid the super guarantee charge.
Prior to 1 January 2020, your employer could use salary sacrificed super contributions to reduce both the earnings amount your super guarantee entitlement is calculated on as well as satisfying all or part of their compulsory super guarantee contributions for you.
It is advisable you and your employer clearly state and agree on all the terms of any salary sacrifice arrangement.
Hi
The Liable for Superannauton option is enabled by default. In this case you should uncheck it.
