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Non-Super Salary Sacrifice |
  
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Non-Super Salary Sacrifice |
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Introduction
A salary sacrifice attributed to something other than a superannuation fund is achieved in e-PayDay® via the setting up of a deduction.
Setting up the Deduction
1. From the main screen click on the 'Pay Types' picture button. This takes you to the PayTypes List window.
2. Click on the 'Add' button to the right of the list.
3. This takes you to the details of this new Pay Type as per below
Fill in the fields as per the following
Active – Yes, since we are definitely going to use this deduction
Type – Deduction, as we are taking away money from the employee's gross pay
Description – This can be anything that has meaning to this situation. For example, "Salary Sacrifice <employee's initials>"
Deducted By – Per Pay Period or Per Lump Sum. If this salary sacrifice is a one off, then make it deducted by "Per Lump Sum". If salary sacrifice is made every pay period then make it deducted by "Per Pay Period".
Value – Type in a dollar sign, followed by the dollar amount of this salary sacrifice.
Salary Sacrifice (Deduct BEFORE Tax is Calculated) – Click into this box to put a cross in it, as the deduction we are making is BEFORE tax.
Report to – Click into this field and type in an identification that you can use to track this deduction and produce a report on it's use. See Tracking Pay Types for further information on this.
Deductions – Most of the boxes are greyed out; we have a choice of either "Superannuation" or "Union". Seeing as if this deduction is NEITHER for superannuation or a union, leave these boxes blank.
Arranging for the Deduction to Appear Automatically in the Employee's Pay Envelope
If the deduction is to come out every pay period then it can be arranged to appear automatically in the employee's pay envelope upon entering it. In other words, this saves you from having to remember to put in the deduction each pay period. Once the deduction has been set up as per above, follow the instructions below
1. From the main screen of e-PayDay®, click on the 'Employees' picture button
2. Find the employee in the list and double click on their name.
3. You are now in the first set of tabs of this employee's details. Go to the 'Pay Types and Cost Centres 6' tab.
4. Click on the down arrow next to 'Available Deductions'
5. Click on the deduction you would like to see come up automatically in this employee's pay envelope.
6. This deduction's pay type number will now appear in 'Selected Deductions'
7. Click on 'OK' (bottom right)
Non Super Salary Sacrifice and FBT
Any salary sacrifice that is not attributed towards a superannuation fund may be subject to fringe benefits tax (FBT). Please check with the Australian Taxation Office if what you are salary sacrificing for, is indeed subject to FBT. If so then you will need to include FBT details on the corresponding employees' payment summaries at the end of the financial year. This is facilitated by e-PayDay®, and involves completing FBT details for each of the corresponding employees. See Fringe Benefits Tax
Reports
In spite of there being no dedicated reports for non-super salary sacrifice, there is a report called 'Deductions'. It's use will depend on the 'Report to' item for the deduction being unique. See Tracking Pay Types.