How do I set up salary sacrifice?

A salary sacrifice occurs where an employee arranges with their employer to give up (sacrifice) part of their pre-tax salary, and in exchange the employer makes an equivalent contribution to a superannuation plan on their behalf.

Note: If an employee is paid under an award, salary sacrifice may not be available to them, as they are not able to reduce the amount they receive from their wage to below the amount stipulated by the award.

To deduct salary sacrifice from a pay

To deduct salary sacrifice from each pay, enter the details on the Employees List – Superannuation window. For a one-time salary sacrifice deduction, set up the details on the e Pay Details – Superannuation tab.

1 Select the Salary Sacrifice as the superannuation Type.

Salary Sacrifice reduces the employee's gross wage and tax. S.G.C. is then calculated on the reduced gross (depending on Super Preferences selected).

2 Select Fund Name of the superannuation fund that the contribution will be made to. If the fund you want hasn't yet been set up, you can type in the name and then press TAB. When you are prompted, click Yes to add it to your Superannuation List. However, generally, superannuation funds should be set up in the Super List before you pay an employee.

3 Enter the employee's Member A/C or ID number for the superannuation fund you have selected.

4 -Enter the salary sacrifice Amount.

 If the salary sacrifice is a fixed dollar amount, enter it here. Generally, most employers will use the dollar amount when they want to manually enter the superannuation.

 If the salary sacrifice is to be calculated as a percentage amount, enter it here.

5 % $ – If the amount is a percentage, select (%). If the amount is a dollar value, select ($).

6 Amt Paid -Elite Payroll will calculate the amount of salary sacrifice superannuation to be paid and enter the dollar value here.