Forum Discussion

Contributing User

17 days ago

Solved

Pre-Tax Novated Lease/SG Superannuation

Hi,

I understand that SGC is not payable on Salary Sacrifice Pre-Tax portions of Novated Leases or Salary Sacrifice items other than Superannuation.

When setting up these accounts in MYOB I can only find ATO Reporting Category: Salary Sacrifice - Other Employee Benefits as a choice.

This reporting category does not give any options or information relating to whether or not SG Super should be applied to it, and is calculating SG Super on this amount.

Is there another way to set up this deduction so that it reduces the gross total for calculation of SG Super?

Thanks

Suzanne

Shella_A
16 days ago
Hi SuzanneDenny,

We appreciate your suggestion to have a deduction option that reduces the Gross amount for the calculation of SGC on Pre-Tax salary sacrificed amounts. I recommend posting this to our MYOB AccountRight Ideas Exchange board for future updates consideration. In the meantime, making manual adjustments is the best approach.

Cheers,
Shella

Shella_A
MYOB Moderator
17 days ago
Hi there SuzanneDenny,

For setting up pre-tax novated leases and ensuring that SG Superannuation is not calculated on the salary sacrifice portions, it is best to consult with your accountant for a more accurate solution. They can provide specific advice tailored to your situation. For more information, you can refer to this link about Salary Sacrificing.

Regards,

Shella
- SuzanneDenny
  Contributing User
  17 days ago
  Hi Shella
  Thank you for responding.
  I don't need advice on whether Super is payable on this type of Salary Sacrifice, I want to know where/how to set this up in MYOB Payroll.
  The current options don't allow for SGC to be reduced for these amounts - or am I missing something?
  I want MYOB specific advice please.
  Thank you
  Suzanne
  - Genreve_S
    MYOB Moderator
    16 days ago
    Hi SuzanneDenny,
    
    The software cannot reduce the Superannuation Guarantee Charge (SGC) as it is based on the gross income. This setup ensures that the super guarantee contributions the employer must make are not affected. You can read more about this in this link.
    
    Regards,
    Genreve