Forum Discussion

Trusted Cover User

6 years ago

Employee Addition Super

I have an employee who make Additional Super payments on his gross earning which should reduce his tax. It worked well until i upgraded to STP and now no matter what i try i cant get the system to recognise the pre tax deduction.

How do i get the system to recognise the deduction so it reduces the tax?

GDay53
6 years ago
ChrisyJones

Welcome to the MYOB Community Forum, I hope you find plenty of useful information.

If a employee wishs to reduce their PAYG then any additional Super they pay is a Salary Sacrifice not Employee Additional. And it should be treated as a R.E.S.C. for STP.
The Employee Additional has always been used for after tax amounts so it is Not Reportable in the STP.

GDay53
Ultimate Cover User
6 years ago
ChrisyJones

Welcome to the MYOB Community Forum, I hope you find plenty of useful information.

I assume the extra Super payment iyou are refering to is a Salary Sacrifice for it to reduce the PAYG. If it was just extra Super then it would not reduce the PAYG.
For STO you need to make sure you have it set up in Superannuation Wage Categories like this;
- ChrisyJones
  Trusted Cover User
  6 years ago
  Hi Graeme,
  
  So to clarify, i now cant use Employee Additional Super as i had been. Now with STP i need to set the employee up as Salary Sacrafice only and this will allow me to choose a ATO Reporting Catagory and will show on my reports for reporting super, is this right?
  
  Thanks Chrisy
  - GDay53
    Ultimate Cover User
    6 years ago
    ChrisyJones
    
    Welcome to the MYOB Community Forum, I hope you find plenty of useful information.
    
    If a employee wishs to reduce their PAYG then any additional Super they pay is a Salary Sacrifice not Employee Additional. And it should be treated as a R.E.S.C. for STP.
    The Employee Additional has always been used for after tax amounts so it is Not Reportable in the STP.