Forum Discussion

MV-8's avatar
MV-8
Experienced Cover User
4 years ago
Solved

Salary sacrifice computer purchase

Hi there,    We have a staff member who wanted to salary sacrifice a laptop purchase. From my understanding, this arrangement is exempted from FBT and the payroll will be processed as: - PAYG with...
  • Melisa_D's avatar
    Melisa_D
    4 years ago

    Hi MV-8, 

     

    Generally super is calculated on the gross ordinary time earnings, as salary sacrifice is not an ordinary time earning it is not included in super calculations. I do recommend following the steps on our help article Salary sacrifice (employee purchase)  on how to set up the salary sacrifice, the software will then calculate Super as per the set up.

     

    Please do let us know if you have any further questions. 

MV-8's avatar
MV-8
Experienced Cover User

Hi Melisa,

 

Thanks for the reply.

So essentially, if the normal fortnightly pay is $2,500, and for that same pay period, although the salary was reduced by $500 due to salary sacrifice computer purchase, the superannuation guarantee will be still calculated based on 9.5% x $2,500 - is that right?

 

Thanks again.

 

Cheers.

Melisa_D's avatar
Melisa_D
Former Staff
4 years ago

Hi MV-8, 

 

Generally super is calculated on the gross ordinary time earnings, as salary sacrifice is not an ordinary time earning it is not included in super calculations. I do recommend following the steps on our help article Salary sacrifice (employee purchase)  on how to set up the salary sacrifice, the software will then calculate Super as per the set up.

 

Please do let us know if you have any further questions.