Salary Sacrifice showing in Superannuation Expense and Wages and Salaries

Hi WendN 

 

Thanks for your post. There's three different processes involved in your query so I'll run through each one separately.

 

Pay amounts in the P&L - these are determined by the accounts selected in the Pay items. The Salary Sacrifice pay item should have a liability payable account selected in the Linked payable account field:

 

 

This means that amounts paid to the Salary sacrifice pay item won't appear on the P&L. Only the amount paid to the Wages pay item will appear on the P&L. As salary sacrifice isn't a business expense it shouldn't be reported to an expense account, the wages amount is the business expense. If your salary sacrifice amount is appearing as a Superannuation expense I would recommend checking the pay item set up.

 

STP reporting - it is mandatory to report super guarantee and salary sacrifice through STP. This process reports those amounts to the ATO.

 

Clearing house - this is how you report and pay the super contributions to the super funds. You will still need to do this either through the Pay super service or through a clearing house of your choice. When you record the super payment transaction in your software, the payment amount is allocated to the liability payable account selected in the pay item. This clears the liability owing from the Balance Sheet.

 

Please let me know if you need further help.

 

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