Salary Sacrifice & Total Wages (W1) for manual IAS

Question

I understand that Salary Sacrifice amounts are to be subtracted from total wages for reporting W1 for IAS/BAS.

New in Ver 2020.2, Deductions now show as a NEGATIVE amount in Payroll Activity reports but is a POSITIVE amount when included in the W1 setup for manual IAS/BAS. So I find that the W1 amount is INCREASED by the Salary Sacrificed amount.

Am I doing something wrong??

tracey_h · Accepted Answer

Hi&nbsp;Keith_W&nbsp;
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Thanks for those screenshots. The deductions should be showing as a positive amount in the Payroll Activity&nbsp;report so I suspect this has something to do with how you have processed those deductions in payroll. Or there has been another payroll transaction which has caused the deduction to become a negative amount in the Activity&nbsp;report.
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This help article has the full instructions on setting up and processing salary sacrifice:&nbsp;
Set up salary sacrifice&nbsp;
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Please let me know how you go with this.
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If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

keith_w · Answer

Thanks Tracey - you were quite correct. We had made an error in setting up the Sal Sac amount using the 'User defined amount' option in the setup (see attached)&nbsp;I entered the Sal Sac as a positive amount in the Std Pay instead of a NEGATIVE amount - mistakenly thinking that MYOB would treat it as a deduction&nbsp;The other setup options automatically treat the amount as a deduction &amp; make it a negative amount in the Std Pay&nbsp;I could not find any reference to that critical step in the MYOB instructions.&nbsp;Thanks again for your help &amp; troubleshooting.&nbsp;Keith&nbsp;

tracey_h · Answer

Hi&nbsp;Keith_W&nbsp;
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Thanks for your post. I've just tested this in 2020.2 and found that W1 amount was decreasing when Salary Sacrifice was selected as expected:
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If you are seeing something different can you please provide screenshots of the BAS/IAS setup and the Payroll Activity summary report. Please remove sensitive&nbsp;information from screenshots prior to posting on the forum.

keith_w · Answer

Hi Tracey,Thanks for your assistance. The obvious difference is that Sal Sac is shown as a negative amount in your setup, but a positive amount in mine.&nbsp;How do I correct that?&nbsp;ThanksKeith

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Salary Sacrifice & Total Wages (W1) for manual IAS

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