Payroll - Salary Sacrifice Setup (STP & SuperStream)

How do I setup Salary Sacrifice in Payroll?

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: https://support.practicalsystems.com.au/Articles?id=1616

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: