Salary Sacrifice employee
Hi, I have an employee who made a regular fortnightly Salary Sacrifice last financial year which reduced his Gross income by $9880. However when he lodged his tax return the prefill on the return showed his original salary of $90000 not the reduced salary of $80120. He manually made the amendment but ATO still used the higher figure in his notice of assessment which meant he was hit with a substantial tax payable bill.
The ATO has advised that the employer (me) has to make a correction to EOFY finalisation report so an amended Tax return can be completed by my employee. I have made the change in the payroll category list Superannuation - Salary Sacrifice - clicked the "Reportable Employer Super Contribution" tab which I think is now correct.
My question is in regards to making the change for last financial, to assist my employee.
Can anyone advise me how I can complete this step? We run AccountRight and use STP reporting.
Hi Corplock13
You will need to undo the finalistion in the Payroll Reporting Centre by selecting the EOFY Finalisation tab>>Choose the payroll year>>click on the ... button for that employee and select Remove Finalisation.
To make the necessary changes in the previous financial year you will need to restore a backup and process a $0 (void) pay to update and correct the YTD amounts with the ATO. Once you have checked the YTD verification report is correct you can refinalise the employee.
Please let me know if you need further help.
