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I've just checked 2018.2 and it hasn't fixed the issue for Salaray Sacrifice payments. There is no STP category for Gross payments in the Deductions area. The MYOB recommended approach for dealing with Salary Sacrifice wages [not super] is to use a deductions category. This gets off set against gross pay when preparing Payment Summaries - we need this if we will do STP. I work with a Not For Profit that is a Public Benevolent Institution. Can you fix this before 1 July please.
May 2018 - last edited June 2018
I have just received information from our Payroll Team on this, and these were the details I received:
In terms of Salary Sacrifice in STP, there is no Gross Payments as there is a specific setup needed as per ATO specification so that we can report the RESC amount and have it automatically reduce the Gross Earnings also.
For Salary Sacrifice Superannuation:
When setting up the Salary Sacrifice Category, we will need to make sure we are specifying the ATO Reporting Category and Contribution Type accordingly:
This is so that when the Backend Service begins grabbing the values, it knows to reduce the gross earnings when submitting to the ATO.
For Salary Sacrifice Deduction (Non-Super):
The ATO Reporting Category for this is: Not Reportable
In order to ensure the Deduction is Pre-Tax in Payroll and the STP engine, we need to also exempt the Deduction from Tax as well. Click the Exempt button and then tick PAYG Witholding:
One common misconception is that the Calculations are now done on the backend and are not directly visible like the Payment Summaries and reducing the Gross by the Negative Salary Sacrifice amounts. Though this is now done for you before being sent to the ATO.
Please feel free to reach out again if you have any questions or concerns.
Thanks for that,
So, just so I am completely clear, when we make the deduction for Salary Sacrifice Expenses and/or Meal Entertainment, set up as suggested in the Support note Salary sacrifice (employee purchases) , the system will now automatically pick up that the gross salary amount has been reduced and set the reduced gross wages amount accordingly for STP Purposes?
You are absolutely correct. When we are creating the Category and stating it is Pre-Tax, as per Step 7:
If it's a pre-tax deduction (which will be deducted from the employee's gross pay), click Exempt and select the PAYG Withholding category.
Ticking that box will reduce the Gross Pay before Tax calculation and our STP engine will take this into account before reporting this to the ATO.
Please feel free to reach out should you have any other questions on this.
MYOB Partner/Social Support
June 2018 - last edited June 2018
Thank you for your feedback in relates with STP and Salary Sacrifice. Very informative.
What if I created the Super Salary Sacrifice under Deduction Tab (which gives me an option before or after tax) not under Superannuation Tab, and the payroll category list hasn't got the RESC on it.
Should I create again all my Super Salary Sacrifice under the Superannuation with the correct account relates to/RESC payroll category/Salary Sacrifice Deduction (only for before tax) and untick the one on the Deduction tab and apply that to the correct employee/s. For the purpose of this STP. Will that carry forward all the figures processed payroll within the financial year? Regardless, we will still have to issue payment summaries for this EOFY 2018, and manually add the amount on RESC and reduces the gross payment. I hope this makes sense?
Sorry for the delay in answering your post.
For your scenario it would be best to create a new Super Salary Sacrifice Category for usage in the new Payroll Year.
For the current year and Payment Summaries, do the same thing as you have done for previous years without a worry. However starting from July 1st, you should be using your new Super Salary Sacrifice Category.
Here is a support note that goes through the processes: Set up salary sacrifice superannuation
Please feel free to reach out again should you have any other questions.
Thanks, @Haydes this has just answered my same query perfectly.
June 2018 - last edited June 2018
I am not sure if I am overthinking this, however, I am still a bit confused.
Just wondering what the consensus is on the correct STP category is for entities like charities where staff can Salary Sacrifice Spending. Is it the same as standard super salary sacrifice or treated differently under STP?
My client has this category set up under a deduction so I am unsure what STP ATO Category to report this under and if it should be a deduction or Superannuation Salary Sacrifice category?
From 1st July 2018 for STP - Do we set up Salary Sacrifice Spending as a "Deduction" or "Superannuation Salary Sacrifice Category"
Scenario 1 - Deduction
Scenario 2 - Superannuation Salary Sacrifice Category
Can you please confirm with the MYOB STP team what is the correct way to set this up (Scenario 1 or Scenario 2) from 1 July 2018 as I am onsite with a large payroll client tomorrow and I need to know the right way to set this up.
Also please confirm what the STP category is in either scenario.
Thank you in advance
June 2018 - last edited June 2018
I received this reply yesterday from the ATO, to my 31 May query - "STP Single Touch Payroll and Salary Sacrifice - ATO reporting guidelines please"
It seems your query relates to changes to the reportable fringe benefit amount (RFBA) reporting on the payment summary last year. The rules of how an exemption is determined haven’t changed in STP reporting; it is the same as it was with payment summary reporting.
[For the STP Development team]:
PAYEVNTEMP125 and PAYEVNTEMP126 are the relevant fields in the STP report but they read a little differently to how RFB reporting is set out on the payment summary . Currently, RFBA is reported and a box is ticked as to whether the employer is exempt. If the employee changes to a new role and a previous exemption is no longer applicable, or vice versa, then a second payment summary would be required to report that RFBA. In STP there is simply a field for RFBA with the exemption and RFBA without the exemption.
There is information in payment summary instructions on how or who the exemption applies to , with links to FBT guides that have information on capping thresholds.
Just as @Kym__Yeoward had mentioned, the rules surrounding what would be reportable in STP and what would be reportable on a Payment Summary have not changed.
The set up for a Pre-Tax deduction is set up in those 2 ways. If the amount needs to be set up to be paid into the Employee's Superannuation, we would set that up as scenario 2 that you mentioned.
If this is a Pre-Tax deduction that is set up as scenario 1 you detailed.
This is designed as per the regular setup processes to set these up from get-go and we have added lines to let the ATO know to reduce the Gross by these figure when they receive a Pay Event from STP.
In terms of RFB decisions are still being made on the best way to report this as this is usually reportable at the end of the year as normal and there may still be the same process of entering the RFB amounts to send an event to the ATO. My understanding is that there will be more details very soon on this, as I get to know more information I will definitely update this thread.
I hope this clarifies things, please let me know if you have any other questions.