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nal1's avatar
nal1
8 months ago

Pre-fill incorrect at W1 when salary sacrifice to super?

Good afternoon,   I am finalising BAS and the pre-fill at W1 includes an amount that has been salary sacrificed in full to the employee's superannuation. When attempting to override W1, an ATO pop-...
Earl_HD's avatar
Earl_HD
MYOB Moderator

Hi nal1,

Thanks for confirming. The reporting rules for Salary Sacrifice vary between STP and Activity statements due to their distinct purposes. On Activity statements, the income reported at W1 excludes the salary sacrifice amount. Conversely, for STP, the Gross amount on the Income Statement includes the pre-salary sacrifice amount, with the Salary Sacrifice amount reported separately. The ATO deducts the Salary Sacrifice amount when calculating the Total Gross amount on the Income Statement. These rules aid organizations like the ATO and Centrelink in evaluating employee earnings and verifying Super Guarantee amounts.
 

In MYOB AccountRight, if set up following the Salary Sacrifice instructions, the Wages on the Register Summary report represents the Pre Salary Sacrifice gross, while the salary sacrifice appears in the Deductions column. Typically, if the salary sacrifice isn't included in W1, it could indicate that it wasn't set up correctly in the deduction tab within the payroll category. You can refer to the help article "Salary sacrificing" for more detailed information on this topic.

Feel free to post again, we're happy to help!

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

Regards,
Earl

nal1's avatar
nal1
8 months ago

Hi Earl,

 

Thanks for your assistance. Yes, it was my understanding that the amount at W1 should not include the amount that was salary sacrificed to super, hence my initial question.

 

Just to update and in case anyone else experiences this issue, I have now spoken with the ATO, who confirmed the amount (pre-filled through STP) at W1 should be $0.00 (the post-salary sacrificed to super amount). The ATO have advised me to override the incorrect amount reported at W1 when submitting BAS.

 

Here is the relevant ATO information https://www.ato.gov.au/tax-and-super-professionals/for-tax-professionals/tax-professionals-newsroom/salary-sacrifice-reporting-and-activity-statements

 

Kind regards,

Nal

  • Earl_HD's avatar
    Earl_HD
    MYOB Moderator
    8 months ago

    Hi nal1,

    Thank you for sharing this valuable information. If you have any more questions, please feel free to post them, and we'll be more than happy to assist you further.

    Regards,
    Earl

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