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| Superannuation guarantee changes from 1 July 2022 - The minimum super guarantee rate increased to 10.5%. What do I need to do?
- The $450 earnings threshold for super guarantee eligibility has been removed and will not be applied by MYOB Essentials for pays dated 1 July 2022 or later. Tell me more...
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If an employee wants to sacrifice some of their pay to go to their super fund, this will be a before tax deduction. If they want money deducted from their net (after tax) pay for super, see Additional superannuation contributions. Salary sacrifice payments are in addition to the compulsory superannuation guarantee contributions you make on their behalf. The amount being sacrificed can be a set amount, or it can vary each pay. UI Text Box |
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| Need more info? The ATO website has some great info on the ins-and-outs of salary sacrificing super. |
Here's how to set up a salary sacrifice pay item, then what it looks like being used in a pay. UI Expand |
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title | 1. Set up a salary sacrifice pay item |
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| Set up a salary sacrifice pay itemPay items are the earnings and deductions on top of an employee's regular salary or wages. Here's how to set up a pay item for salary sacrifice deductions: - From the Payroll menu, choose Employees.
- Click the employee for whom you're setting up the salary sacrifice.
- Click the Pay items - earnings & deductions tab.
- Under Deductions, click the dropdown arrow next to Add deduction.
- If you've already set up a salary sacrifice pay item, you can choose it here. Otherwise click Create new deduction.
Select the Type of deduction. If the deduction is | choose this |
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before tax | Super salary sacrifice | after tax | Super personal contrib'n |
- Enter a Name for the deduction.
- Enter the Amount to be deducted each pay. If the amount will vary each pay, or it's a one-off lump sum that's being sacrificed, enter 0.00 so you can enter the amount during the pay run.
Here's an example for a $100 before tax salary sacrifice deduction. Note the Tax and ATO reporting category fields can't be changed. Learn more about Assign ATO reporting categories for Single Touch Payroll.
 - Click Save.
The salary sacrifice will now appear when paying the employee as shown in the next task. If this pay item applies to other employees, you can assign it to them. Or you can create additional pay items. Learn more about setting up pay items (earnings and deductions). |
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title | 2. Process a pay with salary sacrifice |
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| Process a pay with salary sacrifice- From the Payroll menu, choose Enter Pay.
- Select the employee to be paid then click Start pay run.
- Enter the number of Normal hours being paid.
- If required, enter or change the amount being salary sacrificed.
Here's our example where $100 is being sacrified. Note that the Super value in the pay summary only shows the super guarantee value and doesn't include sacrificed amounts.
 - Finish processing the pay as normal.
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<h2><i class="fa fa-comments"></i> FAQs</h2><br> |
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title | What if an employee wants to salary sacrifice a one-off lump sum payment? |
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| What if an employee wants to salary sacrifice a one-off lump sum payment? If an employee only wants to sacrifice some of their salary to superannuation once (instead of each pay), when setting up the salary sacrifice pay item as described above, don’t enter an amount. This lets you to enter the one-off amount manually against the salary sacrifice pay item when you process the employee's pay. After you’ve processed this pay, you can unlink the pay item from the employee. |
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title | What if I have employees who want to sacrifice different amounts? |
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| What if I have employees who want to sacrifice different amounts? You can either: - set up the pay item as described above and set the value as $0.00. You'll then need to enter the value against the pay item when you pay your employees.
- set up separate pay items for each employee and specify the specific amount to be sacrificed for each.
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