Salary Sacrifice - Payroll Setup (Using SuperStream)

Salary Sacrifice - Payroll Setup (Using SuperStream)

The salary sacrifice contribution is deducted from the employee's gross pay, that is, before PAYG withholding tax is calculated. It reduces the employee's gross taxable income.

Step 1. Make sure your payroll accounts are setup correctly in Chart:

  • Click on the following link for step-by-step instructions on account code setup: payroll setup

Step 2. Add a Salary Sacrifice account in Chart:

  • Click on the Chart toolbar icon.
  • Click on Add button.
  • Account Code, e.g. 173.04
  • Tick the Sub-Account of box.
  • Sub-Account, e.g. 173
  • Description, e.g. Wages - Salary Sacrifice
  • Account Type Operating Expense
  • GST Category 10. Non-reportable Payments
  • Click OK button to save.

 

Step 3: Setup 3 salary sacrifice pay rates:

  • Click on the Payroll icon on toolbar button.
  • Click on the Setup Lists tab.
  • Click on Pay Rates tab.
  • Click on the Add button.

 

  • Fill out the details:
    • Name: Salary Sacrifice
    • Per: Pay
    • Hrs / Units: 1
    • Rate: leave blank 
    • In the Optional Cashbook Account box, click on Allocate to radio dial to select.
    • Select Account 173.04 Wages - Salary Sacrifice.
  • Click on the OK button.

 

  • Still in Payroll > Setup menu options:
  • Click on the Add button.
  • Fill out the details:
    • Name: Salary Sacrifice Deduction
    • Per: Pay
    • Hrs / Units: -1.00
    • Rate: leave blank 
    • Tick the Taxable check box.
    • In the Optional Cashbook Account box, click on Allocate to radio dial to select.
    • Select Account 173.01 Wages - Permanent.
    Click on the OK button.

 

  • Still in Payroll > Setup menu options:
  • Click on the Add button.
  • Fill out the details:
    • Name: Salary Sacrifice Withholding
    • Per: Pay
    • Hrs / Units: -1.00
    • Rate: leave blank 
    • Tick the Reportable Employer Super Contributions check box.
    • In the Optional Cashbook Account box, click on Allocate to radio dial to select.
    • Select Account SUPW Superannuation Withholding 
  • Click on the OK button.
  • Click on the Close button. 

 

Step 4: To set up Salary Sacrifice as a new Wages/Salary Pay Types for an Employee:

  • Click on the Payroll toolbar icon.
  • Click on Employees tab.
  • Click on employee to highlight.
  • Click on the Select Employee button.

 

  • Click on Default Pay Rates tab.
  • Click on the Wages / Salary tab.
  • Click on the Add button.

 

  • In the Add a new Wages / Salary Item window, fill in the following details:
    • Name: select Salary Sacrifice from the drop down list.
    • Per: Pay (default setup)
    • Hrs / Units: 1 (default setup, as we are opting for a nominated amount per pay.)
    • Rate: e.g. 500 
  • Click OK button to save.

 

  • In the Add a new Wages / Salary Item window, fill in the following details:
    • Name: select Salary Sacrifice Deduction from the drop down list.
    • Per: Pay (default setup)
    • Hrs/Units: -1 (default setup, as we are opting for a nominated amount per pay.)
    • Rate: e.g. 500 
  • Click OK button to save.

 

  • In the Add a new Wages / Salary Item window, fill in the following details:
    • Name: select Salary Sacrifice Withholding from the drop down list.
    • Per: Pay (default setup)
    • Hrs / Units: e.g. -1 (default setup, as we are opting for a nominated amount per pay.)
    • Rate: e.g. 500 
  • Click OK button to save.

 

  • Default Pay Rates for Wages / Salary screen should now look like this:
CSC Article ID 4471