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S_L_M's avatar
S_L_M
Experienced Cover User
28 days ago

Payday Super and Salary Sacrifice

I have one employee who is salary sacrificing. The category salary sacrifice is setup under the Superannuation tab with the name Salary Sacrifice - employee name (withheld) The mapping to the ATO Reporting Category Salary Sacrifice and RESC. The contribution type is autofilled by MYOB and greyed as Salary Sacrifice (deduction). Super is paid on the salary including the sacrifice amount and it appears on the employee's payslip under Deductions with description Salary Sacrifice - employee name (withheld). Is this all correct for PayDay Super?

 

There is a legacy entry from before my time under the Deductions tab for Salary Sacrifice Superannuation Type User-entered ATO reporting category Salary Sacrifice - Other Employee Benefits. it is not being used because it's not the description on the payslip. Do I need this? Can I delete it or unassign it? 

 

I am not using MYOB Pay Super as I don't ready access to someone to co-authorise the super payment during the payrun. I am forced to use an external clearing house but have been doing this successfully weekly in preparation for PayDay Super for 2 months.

 

1 Reply

  • Isaiah_C's avatar
    Isaiah_C
    MYOB Moderator
    23 days ago

    Hi S_L_M,

     

    There are two different salary sacrifice setups in AccountRight, so which payroll category to use depends on what the amount is for. If it is an additional employee contribution, it should be set up under the Superannuation tab. If it is an employee repayment, it should be set up under Deductions. For a salary sacrifice employee repayment under the Deductions tab, that payroll category should not be linked in the employee card as a superannuation category. For the legacy payroll category you mentioned under Deductions, if it has not been used in any pay runs, you can delete that payroll category. From what you described, the category currently showing on the pay slip under Deductions sounds like it is being treated as a deduction-type salary sacrifice setup, while additional employee contributions should instead sit under Superannuation. 

     

    Regards,

    Sai

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