We have setup the salary sacrifice superannuation as RESC. And the staff would like to put 4500 in superannuation via salary sacrifice.
When processing the pay run for the staff, do we need to enter the normal gross amount in the gross pay 6278.40 and negative 4500 in Salary sacrifice superannuation or enter 1778.40 (6278.40 - 4500) in gross pay and positive 4500 in salary sacrifice superannuation?
please see the print screen attached.
Regards,
Sam
Hi SamLIANG,
Sorry for the delay getting back to you, and thanks for sending through the screenshot. Because pay setup can affect STP reporting, it’s a good idea to run this past your accountant or financial advisor to make sure everything’s being recorded the right way.
For salary sacrifice super, you’d usually enter the employee’s full gross pay of 6,278.40, then enter the 4,500 separately as the salary sacrifice super amount. That amount is recorded on its own and reduces the employee’s taxable pay, while the gross pay stays at the pre-sacrifice amount. For more info on how salary sacrifice works, you can check out this link.
Cheers,
Princess
