Creating a Payrun that includes Salary Sacrifice in STP2
Hi,
I am just about to transition to STP 2. I have identified my payroll categories in readiness for this.
However, I have come to understand that total salary will now be reported as gross and salary sacrifice reported as a positive amount. As we normally recognize salary sacrifice in payrun as a deduction, I am confused as to how to prepare my payrun after transitioning. For instance, I would normally pay employees their salary sacrifice using spend money and Electronic clearing account, and in the payrun, use a negative sign in front of the amount to reduce their gross pay. My concern is how to prepare the payrun to show the gross amount, the salary sacrifice amount (positive amount) and the net effect on employees' pay.
Also, how do I reconcile this to payments I have made before I transition.
Thank you.
Kind regards,
INO
Hi INO1
Thanks for your post. There's no changes to the way you process a payrun that includes Salary Sacrifice or how that payment transaction should be processed, ie Pay Super or Pay Liabilities.
In STP Phase 1 Salary Sacrifice amounts reduce the gross payments amount and are reported as a positive value under the Reportable Employer Super Contributions (RESC) ATO reporting category.
In STP Phase 2 Salary Sacrifice amounts do not reduce the gross payments amount are reported as a positive value under the applicable STP Phase 2 ATO reporting category.
STP Phase 1 Summary of payments report:
STP Phase 2 Summary of payments report:
Please let me know if you need further help.
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