Superannuation Guarantee not subtracting Salary Sacrifice First

sHIPPLESoFFICIA
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sHIPPLESoFFICIA

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Superannuation Guarantee not subtracting Salary Sacrifice First

I'm currently doing a course on payroll and apart of the course Ive been tasked with using MYOB to process payroll. Ive done the payroll manually so I know what figure I should be getting . Basically all thats happening is that when MYOB calculates the Superannuation Guarantee it doesnt subtract the salary sacrifice off of the gross wages figure. Because of this the superannuation guarantee is off by 5 dollars. The photo below shows my problem where Superannuation Guarantee is showing $50.54 (Annual Leave + Base Hours) which is incorrect it should in fact equal $45.79 (Annual leave pay + Base Hourls - Salary Sacrifice). How do I make it subtract the salary sacrifice first?? Sorry if this explenation is confusing Im still only learning so its all very new to me. Thanks for any assistance. Capture.PNG

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Ultimate Partner Seattle
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Re: Superannuation Guarantee not subtracting Salary Sacrifice First

@sHIPPLESoFFICIA

 

My understanding is that the Government intends to change the law.

In my view, the fact that currently SG is not by law payable on Salary Sacrifice was a drafting error by the Government.

 

I also understand that many employers already pay SG on Salary Sacrifice and this is what I would do if faced with such a situation (in consultation with the employer).

Why should an employee be penalised and the employer gain a benefit?

 

I recall there was a rent post on this topic on the Community.

 

Duncan

 

Duncan Smith
Business Advice + Tax
Helping business owners build a better business since 1998
E expressgst@optusnet.com.au T 02 9904 3672 7 days
Ultimate Partner Julie_A_C
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Re: Superannuation Guarantee not subtracting Salary Sacrifice First

Hi @sHIPPLESoFFICIA

 

The Salary Sacrifce reduces the tax paid.

 

By rights the employer can claim the amount of salary sacrifce super as part of their SGC, but not many do.

 

To do this though you would need to set up another superannuation category and exclude the first $xx from the caluclation and attach to that employee only (so you don't underpay super for all the other employees.  The $xx amount would be the amount they are sacfricing divided by 0.095.

 

 

 

Julie Carter AIPA, BBus(Acctg),
MYOB Professional Partner, Registered BAS Service Provider
Associate Member of Institute of Public Accountants
Member Association of Accounting Technicians
ph: 0417 927 654 email: accuratebooks7@gmail.com
JAC' of All Trades Bookkeeping (Servicing from Leederville to Pinjarra, Fremantle to Armadale WA)
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