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I am using Essentials - I have a new employee who wishes to have all of her wages paid via Salary Sacrifice to her Super Account.
I went to the deductions area and started filling in a Salary Sacrifice deduction but since she is casual and paid by the hour, there isn't really a set amount that I can put in the Default$/pay box.
Can someone please advise the best way to set this up and any other things that I will need to be aware of for this request? We use the Super Portal for our employees.
Solved! Go to Solution.
When setting up a Deduction for an employee you do need to specify a default amount per pay, this needs to be a dollar value not a percentage.
If the employee is a casual and earns a varied amount but they want to deduct 100% of their wages I would set it up as either the amount they would get paid normally OR set it to be 0.00. When you process the pays for the employee you can always click into that field and make the necessary changes to the default amount i.e. if they get paid slight less than normal you can adjust the value of that deduction downwards.
As an example I set up my deduction to be 0.00 as the default when going into the pays I can click into that field to adjust the value, in this case I would change it to be 100 so that it matches the Normal amount.
I understand that Salary Sacrifice Super is required to be paid monthly (not quarterly).
You should confirm this (and my comments below) with the ATO.
It may be part of a Financial Plan to Salary Sacrifice 100% of a Wage.
The SG and Salary Sacrifice is taxed at 15% by the Super Fund - it is important that a person who Salary Sacrifices utilises at least the amount of income where no tax is paid ie some $18,200.
Many companies do not offer Salary Sacrifice due to the administrative burden.
I understand that the law is changing from 01 July 2017 to enable employees to claim a tax deduction for super contributions - this is a good move by the Government
Thank you Steven, that works