Salary Sacrifice Reporting as Negative Figure in Income Statement after STP2 Transition

[INO1]

Hello,

I recently transitioned to STP2. The YTD report shows the total payment (including the salary sacrifice) as a positive amount and then the salary sacrifice amount as a negative figure. The individual payment summary lists all paid categories as positive figures. However, the income statement from MyGov shows a net gross income (net of salary sacrifice) and the salary sacrifice amount itself as a negative figure. Thus, gross payment is reduced by the salary sacrifice.

Going by what I read on ATO's site, I believe this goes against the ATO advice on how to report salary sacrifice in STP2:

Below are my screenshots for the sample employee:

Individual summary report from STP and Income statement from MyGov

STP YTD report

I do not know how to get the income statement on MyGov to report total payment and the salary sacrifice as a positive amount. Perhaps there is something I have done wrong or not doing well.

I would appreciate it if someone could kindly help me out.

Thank you.

Kind regards,

INO1

[INO1]

Good morning all,

I am still awaiting a response to this post.

Just trying to make sure that I am on the right track.

I would appreciate any help.

Thank you.

Kind regards,

INO

[Tracey_H · Accepted solution]

Hi @INO1 

Thanks for your post. Looking at your screenshots the salary sacrifice appears to be reported correctly from the software. The employee's Summary of payments report is reporting the salary sacrifice amount as a postive figure to the ATO and the total gross amount is not reduced by the salary sacrifice. Gross payments of $18748.13 plus paid leave of $1470.91 equals $20219.04, which matches the Payroll activity report wages amount.

When prefilling the Income statement in myGov the ATO have entered the salary sacrifice as a negative and have reduced the gross income amount by the salary sacrifice to give a Total gross amount of $19913.29.

The YTD verification report is the employer summary of what has been reported for the individual employees. It will display the total salary sacrifice amount as a negative for reconciliation purposes. However, those amounts are correctly reported as positives in the employee Summary of payments reports.

Please let me know if you need further help.

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.