Payroll - Salary Sacrifice Setup (basic)

How do I setup Salary Sacrifice for an employee in Payroll? DELETE - DOESN"T WORK FOR STP

To setup Salary Sacrifice (basic) as a new Payroll Pay Rate item:

Note: if you are using Cashbook SuperStream use Knowledge Base instructions for Payroll - Salary Sacrifice Setup (if using Cashbook SuperStream)

Step 1:

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: leave blank
  • Hrs/Units:leave blank
  • Rate: leave blank 
  • (Note: Per, Hrs/Units, Rate may vary between employees. These can be set up individually for each employee.)
  • Tick Taxable check box.
  • In the Optional Cashbook Account box, click on Include with wages radio dial to select.
  • Tick the Reportable Employer Super Contributions check box.
• Click on the OK button.

To set up Salary Sacrifice as a new Wages/Salary Pay Type for an Employee:

Step 1:

• 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: click on the drop down arrow to select an option. e.g. Pay.
  • Hrs/Units: e.g. 1, as we are opting for a nominated amount per pay.
  • Rate: e.g. -200 ENTER THIS AMOUNT AS A NEGATIVE
  • Taxable check box should be ticked.
  • Optional Cashbook Account is Include with wages.
• 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 ($700). Super will be calculated on the original Gross amount ($900).  

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