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Brindal's avatar
Brindal
Experienced Cover User
6 days ago
Solved

Superannuation salary sacrifice

Hi   The director of my compnay does not draw a wage however he has requested I porocess $30,000 salary sacrifice via payroll.    I have set up the account per the myob instructions.     ...
  • gavin12345's avatar
    gavin12345
    6 days ago

    Hi Brindal​ 

    You can't (or shouldn't) record a negative pay - that's not what is happening. Suggest you search the Support area for how to process salary sacrifice transactions. 

     

    Before an employee can salary sacrifice, they need to be paid. So, for example, your base salary should be set to $30k, the employee can then salary sacrifice $30k, resulting in a $0 net pay.

     

    I am not suggesting this is correct in your case, I would strongly suggest discussing this with the business' tax adviser. Rather than salary sacrificing, the employer might simply make an Employer contribution (known as RESC). Salary sacrificing has super guarantee implications for the employer.

     

    Regards

    Gavin

     

gavin12345's avatar
gavin12345
Ultimate User
6 days ago

Hi Brindal​ 

You can't (or shouldn't) record a negative pay - that's not what is happening. Suggest you search the Support area for how to process salary sacrifice transactions. 

 

Before an employee can salary sacrifice, they need to be paid. So, for example, your base salary should be set to $30k, the employee can then salary sacrifice $30k, resulting in a $0 net pay.

 

I am not suggesting this is correct in your case, I would strongly suggest discussing this with the business' tax adviser. Rather than salary sacrificing, the employer might simply make an Employer contribution (known as RESC). Salary sacrificing has super guarantee implications for the employer.

 

Regards

Gavin

 

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