Salary Sacrifice - Setup in Payroll (not using SuperStream)

Salary Sacrifice - Setup in Payroll (not using SuperStream)

Part A: To Setup Salary Sacrifice as a New Pay Rate Item in Payroll

Step 1: Pay Rates

Click on the Payroll icon on toolbar button

  • Click on the Setup Lists tab
  • Click on Pay Rates tab
  • Click Add

 

iv. Fill out the details:
  1. Name: Salary Sacrifice
  2. Per: leave blank
  3. Hrs/Units: leave blank
  4. Rate: leave blank 
  5. Note: Per, Hrs/Units, Rate may vary between employees. These can be set up individually for each employee.
  6. Tick Taxable check box
  7. In the Optional Cashbook Account box, click on Include with wages radio dial to select
v. Click OK

 

Part B: To Setup Salary Sacrifice as a New Wages/Salary Pay Type for an Employee

Step 1: Employee

  • Click on Employees tab
  • Click on employee to highlight
  • Click on the Select Employee button

Step 2: Applicable Pay Rates

  • Click on Applicable Pay Rates tab
  • Click on the Wages/Salary tab
  • Click Add

 

iv. In the Add a new Wages/Salary Item window, fill in the following details:
  1. Name: select Salary Sacrifice from the drop down list
  2. Per: click on the drop down arrow to select an option. e.g. Pay
  3. Hrs/Units: e.g. 1, as we are opting for a nominated amount per pay
  4. Rate: e.g. -200 ENTER THIS AMOUNT AS A NEGATIVE
  5. Taxable check box should be ticked
  6. Optional Cashbook Account is Include with wages
v. Click OK button to save

Note:  For this example - The employee's (John Brown) Gross Pay will be reduced by $200 , thus the amount of PAYG Withholding Tax will also be reduced, as it is calculated on the reduced Gross amount ($1800). Super will be calculated on the original Gross amount ($2000)

 

Applicable Pay Rates for Wages/Salary screen should now look like this:

 



Article ID 1710