I was wondering if someone could point me in the right direction.
If a staff member earns $50,000 p.a. + super 9.5 % and they also want to salary sacrifice $5,000 pre tax, do I enter the staff members hourtly rate as $25.6410 ( $50,000 divided by 52weeks divided by 37.5 hours) and then process the salary sacrifice amount of $96.1538 ( $5,000 divided by 52) or do I need to adjust thier package to $45,000 ( $50,000 less the salary sacrifice of $5,000) ie decrease thier hourly rate to $23.0769 ( $45,000 divided by 52weeks divided by 37.5 hours) and then process the $96.1538 as the salary sacrifice amount
The way to look at salary sacrifice is rather than the money going to the employee's bank account it is going to the employee's superannuation fund. For example, the employer pays the employee $100 amount, this is then divided by $75 take home and $25 to the superannuation fund, the employer is still paying $100 to that employee it's just being split by the employee according.
In terms of setting that pay rate it would be the amount that you are wishing to pay the employee. For example, if the amount you are paying the employee is $40,000 per year and the employee is salary sacrificing 10% you would enter $40,000 as the Annual Salary in AccountRight. The 10% salary sacrificing occurs after you pay the employee.
The way to look at salary sacrifice is rather than the money going to the employee's bank account it is going to the employee's superannuation fund. For example, the employer pays the employee $100 amount, this is then divided by $75 take home and $25 to the superannuation fund, the employer is still paying $100 to that employee it's just being split by the employee according.
In terms of setting that pay rate it would be the amount that you are wishing to pay the employee. For example, if the amount you are paying the employee is $40,000 per year and the employee is salary sacrificing 10% you would enter $40,000 as the Annual Salary in AccountRight. The 10% salary sacrificing occurs after you pay the employee.
This has answered my question. I have however reduced thier hourly rate by the salary sacrifice amount so in essence I have not paid them enough. What would be the best way to correct this.
for example if I have processed $200 as a super salary sacrifice and the staff member said, just put this to there super do I process a seperate pay run as follow
If the employee wants to be paid that amount you would process a pay with the amount allocated to the required pay i.e. Base Hourly $x with no salary sacrifice.
If the employee wants to have that amount go to their superannuation fund as salary sacrifice, you would process a pay for that employee with the Base Hourly being $x and the salary sacrifice amount being the amount as a negative. This would be the same as you have listed in your post.
It should also be noted that there may be some PAYG/tax implications with processing that pay amount that may need to be considered.
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I was wondering if someone could point me in the right direction.
If a staff member earns $50,000 p.a. + super 9.5 % and they also want to salary sacrifice $5,000 pre tax, do I enter the staff members hourtly rate as $25.6410 ( $50,000 divided by 52weeks divided by 37.5 hours) and then process the salary sacrifice amount of $96.1538 ( $5,000 divided by 52) or do I need to adjust thier package to $45,000 ( $50,000 less the salary sacrifice of $5,000) ie decrease thier hourly rate to $23.0769 ( $45,000 divided by 52weeks divided by 37.5 hours) and then process the $96.1538 as the salary sacrifice amount
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I was wondering if someone could point me in the right direction.
If a staff member earns $50,000 p.a. + super 9.5 % and they also want to salary sacrifice $5,000 pre tax, do I enter the staff members hourtly rate as $25.6410 ( $50,000 divided by 52weeks divided by 37.5 hours) and then process the salary sacrifice amount of $96.1538 ( $5,000 divided by 52) or do I need to adjust thier package to $45,000 ( $50,000 less the salary sacrifice of $5,000) ie decrease thier hourly rate to $23.0769 ( $45,000 divided by 52weeks divided by 37.5 hours) and then process the $96.1538 as the salary sacrifice amount
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If a staff member earns $50,000 p.a. + super 9.5 % and they also want to salary sacrifice $5,000 pre tax, do I 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Salary Sacrifice","moderationData":{"__ref":"ModerationData:moderation_data:693196"},"body":"
The way to look at salary sacrifice is rather than the money going to the employee's bank account it is going to the employee's superannuation fund. For example, the employer pays the employee $100 amount, this is then divided by $75 take home and $25 to the superannuation fund, the employer is still paying $100 to that employee it's just being split by the employee according.
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In terms of setting that pay rate it would be the amount that you are wishing to pay the employee. For example, if the amount you are paying the employee is $40,000 per year and the employee is salary sacrificing 10% you would enter $40,000 as the Annual Salary in AccountRight. The 10% salary sacrificing occurs after you pay the employee.
The way to look at salary sacrifice is rather than the money going to the employee's bank account it is going to the employee's superannuation fund. For example, the employer pays the employee $100 amount, this is then divided by $75 take home and $25 to the superannuation fund, the employer is still paying $100 to that employee it's just being split by the employee according.
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In terms of setting that pay rate it would be the amount that you are wishing to pay the employee. For example, if the amount you are paying the employee is $40,000 per year and the employee is salary sacrificing 10% you would enter $40,000 as the Annual Salary in AccountRight. The 10% salary sacrificing occurs after you pay the employee.
This has answered my question. I have however reduced thier hourly rate by the salary sacrifice amount so in essence I have not paid them enough. What would be the best way to correct this.
for example if I have processed $200 as a super salary sacrifice and the staff member said, just put this to there super do I process a seperate pay run as follow
This has answered my question. I have however reduced thier hourly rate by the salary sacrifice amount so in essence I have not paid them enough. What would be the best way to correct this.
for example if I have processed $200 as a super salary sacrifice and the staff member said, just put this to there super do I process a seperate pay run as follow
If the employee wants to be paid that amount you would process a pay with the amount allocated to the required pay i.e. Base Hourly $x with no salary sacrifice.
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If the employee wants to have that amount go to their superannuation fund as salary sacrifice, you would process a pay for that employee with the Base Hourly being $x and the salary sacrifice amount being the amount as a negative. This would be the same as you have listed in your post.
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It should also be noted that there may be some PAYG/tax implications with processing that pay amount that may need to be considered.
If the employee wants to be paid that amount you would process a pay with the amount allocated to the required pay i.e. Base Hourly $x with no salary sacrifice.
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If the employee wants to have that amount go to their superannuation fund as salary sacrifice, you would process a pay for that employee with the Base Hourly being $x and the salary sacrifice amount being the amount as a negative. This would be the same as you have listed in your post.
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It should also be noted that there may be some PAYG/tax implications with processing that pay amount that may need to be considered.
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