To set up a salary sacrifice payroll category

1. Go to the Payroll command centre and click Payroll Categories.
2. Click the Superannuation tab.

3. Click the zoom arrow to open the Salary Sacrifice category. If this category doesn't exist, click New to create it.

   You can include additional information in the category name to make it easier to identify, for example Salary Sacrifice 10% - Alan Long.

4. Select the applicable Linked Payable Account.

5. If you're using Single Touch Payroll reporting, choose the applicable ATO Reporting Category. For more information, see Assign ATO reporting categories for Single Touch Payroll reporting.

6. If you're creating a new superannuation category, ensure the Contribution Type is set to Salary Sacrifice (deduction). This will ensure the deduction is made from pre-taxed earnings.

7. Set the Calculation Basis.

   If the salary sacrifice is for	do this
   a fixed %	Select the first Equals option and specify the Percentage of Gross Wages to be sacrificed. Example: If you need to salary sacrifice different percentages for different employees, you'll need to create a separate salary sacrifice superannuation category for each employee.
   a fixed $ amount	Select the second Equals option and specify the Dollars per Pay Period to be sacrificed. Example:

8. Click Employee and select the employee who's sacrificing these payments.
   
   

   Exempting wage categories (fixed % only)

   If you're setting up a fixed % salary sacrifice and there are wage categories you want to exempt from the salary sacrifice calculation, for example overtime, click Exempt and select these categories. Check with your accounting advisor or the ATO for clarification.

9. Click OK to save the salary sacrifice category.

What if I have employees who want to salary sacrifice different fixed amounts?

Alan wants to salary sacrifice $200, but Steven wants to sacrifice $150.

Here's how to do it:

1. Set up the salary sacrifice superannuation category with the Calculation Basis set to User - Entered Amount per Pay Period.
   
2. Open the employee's card and click the Payroll Details tab.
3. Click Standard Pay and specify the amount of super to be deducted for this employee next to the Salary Sacrifice category. Remember to enter this as a negative value. Here's an example:
   
4. Click OK.
5. Repeat steps 2 - 4 for each employee who wants to salary sacrifice a different amount.

Can I pay an employee's super into more than one fund?

Yes, you can pay an employee's super into multiple funds.

Why is my salary sacrifice calculating incorrectly?

If you have set up Salary Sacrifice to use a fixed percentage, the calculation will look at the total pay for the month and work out the amount to sacrifice. So, if your salary sacrifice is set up mid-month there may be previous pay amounts used in the calculation.

In these cases, manually enter the correct salary sacrifice amount when recording your pays. The following month the calculation will correct.

How do I delete a super salary sacrifice payroll category?

You can only delete a superannuation category if it hasn't been used in an employee's pay.

1. Go to the Lists menu and choose Payroll Categories.

2. Click the Superannuation tab.

3. Click the zoom arrow to open the superannuation category to be deleted. The Superannuation Information window for that category appears.

4. Go to the Edit menu and choose Delete Superannuation.