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ComCons's avatar
ComCons
Experienced Cover User
9 hours ago

Salary Sacrifice ( S57A exempt )

Morning,   we are a small not for Profit that has PBI status.  On the STP finalisation we report the grossed up amount under the S57A.  We have an employee who has queried there EOFY finalisation and I have noticed that MYOB has linked the deduction account we use to pay the amount out. See example of STP finalisation. 

 

I am know doubting if this is correct - is there anyone else who is in a similar situation and do you record under both.  I am thinking because Exempt from FBT is the FBT year , and the other is the financial year, but now have myself confused.    Any suggestions appreciated 

STP

1 Reply

  • Doreen_P's avatar
    Doreen_P
    MYOB Moderator
    6 hours ago

    Hi ComCons,

     

    Thanks for the screenshot. These two STP labels can be confusing, but having both appear can be correct. Where a benefit is both salary-sacrificed and a reportable fringe benefit, the ATO requires both to be reported. They represent different things:

     

    • Salary sacrifice – other employee benefits: the actual salary or wages sacrificed for non-super benefits during the 1 July–30 June financial year, without grossing up. In MYOB, this is an ATO reporting category assigned to the deduction, rather than the ledger account used to pay it out.
    • Exempt from FBT under section 57A: the grossed-up reportable value of applicable benefits for the 1 April–31 March FBT year, reported in the income year ending the following June.

    MYOB’s ATO reporting categories guide also explains the salary-sacrifice deduction category. It's also best to have your accountant check the categories before making any changes. 

     

    Cheers,

    Doreen

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