Salary sacrifice super payslip items

An employee has opted to have $20 super sacrificed (SSS) from his wages each week. So I added a new payslip item under Contributions called Salary sacrifice super, with super liability account and ATO category of Reportable super contributions.

When I did the pays, I deducted the $20 from gross pay and calculated the tax on that amount with the employee paid gross- $20 SSS - tax = Net pay. However, when I do the payslip, the $20 super is not deducted from the gross pay, it is listed under contributions.

So I created a new account for SSS under Deductions however the ATO reporting category for reportable super contributions is not an option.

When I redo the payslip, using this deduction account, it now shows correct net pay actually paid to the employee.

How should I correctly deal with SSS?

What you describe is a deduction, not a contribution, because it is paid by the employee, not the company. See the Guide: Set up payslip items | Manager. (My answer is based on what you wrote, not necessarily on any Australian law.)

from your explanation it show that, the SSS is like an income to you. you deduct it from employee salary and put it in your company as income. Then this is not contribution in payslip iterms

To do so: create an account in income group from chart of accounts and you may call it SSS. go to payslip iterms. then under deductions create an iterm as SSS and do not link this account to liabilities accounts since newer versions of manager added ability to link to P&L accounts, So link this payslip iterm to SSS account you created earlier in income accounts.

Then when you create a payslip to that employee in deduction select that deduction SSS, and other deductions so this will deduct from employee gross pay and finally you will have a net pay.
Then the deduction you made will be available in your P&L reports since it automatically reflect in Income as obtained from that employee.

If its not clear please give more explanation

No, I do not believe that is true. I believe it is an extra amount that the employee is allowed to contribute towards retirement from their pay. Assuming that is true, the employee’s deduction becomes a liability of the business, because the business must pay it into the retirement fund.

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Salary sacrifice is a payslip deduction but the localisation is not currently programmed to accommodate it.

Thankyou. That seems the likely explanation. I was puzzled, it appears “Reportable Superannuation contributions” should be an ATO category option under deductions not contributions then? I will have to allocate super payment correctly between the superannuation liability and SSS liability accounts. Perhaps there will be program updates, as STP requirements are being updated next financial year and SSS will have to be reported each payrun.

Superannuation can be paid as:

  • A Compulsory employer payment
  • An above award employer payment
  • Employee salary sacrifice payment

Manager’s Australian localisation currently supports the first 2 only

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