MYOB Salary Sacrifice
See Salary sacrifice for an overview of the requirements.
Salary sacrifice superannuation
Setting up a Salary Sacrifice Superannuation category
This will allow contributions to be paid into each employee's usperannuation fund even if each of them is contributing different amounts.
Adjust the Employee card for salary sacrifice
- Select "Lists" from the top of the screen and highlight "Payroll Category" and then "Superannuation".
- Click the zoom arrow next to Salary Sacrifice. The superannuation information appears.
- Select the linked superannuation payable account if not already selected.
- Click the " User - entered Amount per Pay Period calculation basis.
- Click EMPLOYEE tab at the bottom and select the employees who are involved in sacrificing some of their salary towards superannuation. Click OK.
- Click OK and return to the Payroll category list window.
- From the Cards list in the Cards command centre, click on the Employee tab and choose the employee to be adjusted.
- Click on the Payroll Details TAB and select "Standard Pay" at the LHS.
- Click in the Amount column next to Salary sacrifice and enter as a negative amount.
Salary Sacrifice and SGC
To exclude the Salary sacrificed portion from the SGC Superannuation:-
- Set up an additional wage Superannuation Guarantee category which excludes the amount of salary sacrifice.
- Name the Superannuation "Super Guarantee Excl Sal Sac" - linked expense account Superannuation Expense, Linked Payable account - Superannuation Liability.
Contribution type " Superannuation Guarantee (expense). Pint on Pay Advice. Equals 9% of Gross wages.
Exclusions: exclude the first e.g.$100 of eligible wages from calculations.
Limit - No.
- Assign the category to the relevant employees.
Salary sacrifice super and the payment summary
At the end of the financial year when printing the Payment summaries for employees who make salary sacrifice contributions to their superannuation funds:-
In the Set up Payment Summary fields window:
- Select Gross Payments in the Payment summary field column.
- Select Salary Sacrifice in the Select Payroll Catetgories column.
Old Method of Recording Salary Sacifice now replaced by above method.
Adjust the Employee's Payroll
- Calculate the amount of the sacrifice and deduct it from the annual salary.
For example, if an employee has a salary of $40,000 and has elected to sacrifice $100 per week for additional superannuation payments (or $5200 per annum) the new annual salary becomes $40,000 less $5200 = $34800.
- Go to the Cards command centre, select employee and click on Payroll details tab. Then select "
wages" and change the Annual salary to $34800.00
- Click the "Create a New Payroll Category" button at bottom of screen.
- Type in the name at the top " Salary Sacrifice".
- Tick "Override Employees expense account" and enter the Superannuation expense account.
e.g. 6-3120 Superannuation
- Click on the EXEMPT button at the bottom and tick "PAYG withholding".
Superannuation is now exempt from tax deductions.
- In the " Select all relevant wage categories for this employee" - Tick Salary sacrifice.
Set up the deduction for the Salary sacrifice
This will result in only one deduction category for all employees.
Exclude Salary Sacrifice superannuation from SGC
- Click on "Lists " at the top of the screen. Select and highlight "Payroll categories" and click on "Deductions".
- Click on the "NEW" tab at the bottom and type in "Salary sacrifice superannuation" as the deduction name.
- The linked Payable account will be "Superannuation Payable" liability account.
- click the Equals 0 % button and type in "100%" of " Salary sacrifice" select from down arrow.
- Limit - "No Limit"
- Click on the EXEMPT button at the bottom of this screen and make sure PAYG Withholding is NOT ticked.
The sacrifice deduction will be included in the gross pay AFTER calculating tax.
- Select the EMPLOYEE button and select the appropriate employee for this new deduction.
Because Salary Sacrifice is not Ordinary Times Earnings (OTE), it is not included in the calculation of the SGC.
- From the Payroll Category List - (Lists - Payroll Category) - click on Expenses.
- Click on the arrow besides SGC Superannuation.
- Click on the Exempt button.
- Put a tick (or cross) next to the Salary Sacrifice Superannuation Wages category.