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I have an employee who has requested to salary sacrifice 100% of their income. I have set this up as 'super salary sacrifice' under deductions and selected 'before tax'.
When processing the pay run, I enter the pay as normal, then put the entire gross wages figure into the 'deductions' box. This doesn't alter the 'gross' pay, but sets the 'take home pay' as $0.
When the pay run is completed, I then transfer the 'take home pay' totals to each employee's bank account. In the case of the employee that is salary sacrificing, I transfer the entire 'gross pay' amount directly to their super fund account.
Each transfer on the automatic bank feed is automatically matched to the wages payment.
My problem is that the salary sacrifice payment doesn't automatch and I can't manually match it (i.e. the 'match' tab under allocations doesn't contain any potential matches). If I try to allocate it as 'wages', it counts this sum twice in my 'wages and salary' account. Is there a way I can match this transaction to the salary sacrifice amount?
Any help would be much appreciated.
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I always find this tricky in MYOB and have had a similar issue.
I suggest you check the MYOB website for support notes on the proceedures for this.
Hope this helps.
Based on what you are describing you have the correct setup for that process.
In terms of matching that salary sacrifice bank feed transaction, you would be matching that to the respective bank transaction in MYOB Essentials that has paid out that amount from the payroll deductions account. i.e. when you process a salary sacrifice it will place that value into the payroll deductions account (which is a liability), you then would process a transaction in MYOB Essentials (Spend Money) to record the value of that liability being paid off. This Spend Money transaction would be the one you match to the bank feed transaction.
Do let us know how you get on and if you require further assistance.
Great. Thanks Steven. Just to clarify - when creating the 'spend money' transaction, should the allocation be to 'payroll deductions' rather than 'wages and salary'?
Yes, the allocate to account would be that payroll deductions account not the wages and salary account - you want to reduce your liability i.e. you are on-paying that money on behalf of the employee.
You could also just allocate that transaction from the Bank transactions window without the need of manually generating the Spend Money transaction. Doing that allocate option will have the same effect.