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Salary sacrifice - super

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T-Dubs
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Salary sacrifice - super

Hi

 

I have issues with setting up salary sacrifice in MYOB Essentials Accounting.

  

1.Super salary sacrifice

 

I have set up a salary sacrifice to super for one of the employee.  When a pay run is performed, why the Super salary sacrifice amount won’t go to super expense on the P&L but instead shown as part of wages paid?

 

Also, the salary scarified amount will not show as part of super payable account we have setup.  How can we nominate the super liability account for the salary sacrifice to super?

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Former Staff Sebastien_D
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Re: Salary sacrifice - super

Hi @T-Dubs,

Thanks for your query.

Firstly the Profit and Loss report will still show the Sacrifice amount still part of Wages paid as it is still Salary. However if you would like to change the Super account allocation for your Salary Sacrifice, this can be done in the Payroll Command Centre >> Payroll Categories >> Superannuation >> Salary Sacrifice. 

Please check this and let us know how you go as we are happy to assist further.

Kind Regards

Sebastien
MYOB Client Support


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T-Dubs
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Re: Salary sacrifice - super

Hi Sebastien

 

Thanks for your reply, although I don't quite agree with the treatment here.  The Sacrifice amount to super should not be part of wages paid as it is not included in the taxable income of an employee.  If we include it as wages, this mean we will under-declare the super paid by an employee.  I really dislike the fact I need to do journal entry to move from it from wages to super.  

 

However if you would like to change the Super account allocation for your Salary Sacrifice, this can be done in the Payroll Command Centre >> Payroll Categories >> Superannuation >> Salary Sacrifice. 

 

I don't know if I have different version of MYOB essential software of something.  I could not see the menu function you mentioned above.

 

I also have one more question in relation to salary sacrifice (not to super).  Do we use standard deduction as the deduction type for this?  I note even if I choose "YES" to before tax column.  When the payment slip is generated, it will include the sacrifice amount to the gross payment and calculated PAYG withholding on this gross payment.  How can I set it up so it will show the net amount (gross wage – salary sacrificed amount) and calculate PAYG withholding based on the net amount?

 

MYOB Moderator CloverQ
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Re: Salary sacrifice - super

Hi @T-Dubs,

 

In MYOB Essentials Accounting, the Superannuation expense and payable accounts only tracks the Superannuation Guarantee Contribution, while Salary Sacrifice is employer additional superannuation which is different than the standard SGC. When there is a Salary Sacrifice agreement, the SGC is often calculated based on the reduced salary, however it will depend on the actual agreement entered with your employee.

 

By default Salary Sacrifice will be tracked by the Wages & Salaries expense account, and the Payroll Deductions liabilities account. You can change the account name and number, however it will not be the same accounts used to track SGC. I'm afraid the steps Sebastien mentioned is for AccountRight not for Essentials Accounting, my apologies.

 

When you go in employees contact > Additions/Deductions tab, please do select the deduction type as 'Super salary sacrifice' so it can be reported correctly in Payment Summaries. Please also set this deduction to be before tax, this way Essentials will reduce the gross wage by the sacrificed amount first, then calculation the superannuation amount. 

 

Hope this helps. Please feel free to let us know how you go. 

Cheers,
Clover

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