How do I set up an Employee's Salary Sacrifice to Superannuation

How to set up an Employee's Salary Sacrifice to Superannuation.

To reduce an employee's assessable income through salary sacrificing, the arrangement must be considered 'effective'. Otherwise, the benefits are treated as assessable income received by the employee. To have an effective salary sacrifice arrangement, you should:

enter the arrangement before your employee performs the work,
have a written agreement between you and your employee, and
ensure the employee can't access the sacrificed salary.

The Payee should seek financial advice before entering a salary sacrifice arrangement. An effective salary sacrifice arrangement can't include salary and wages, leave entitlements, bonuses or commissions that they accrue before they enter an arrangement.

The Fair Work Commission regulates employment agreements and conditions.

STEP 1 (Optional)

Add a User-Modified Salary Sacrifice (To Super Fund, OTE) Deduction.

STEP 2 - Assign the System Default or User Modified Salary Sacrifice (To Super Fund, OTE) Deduction to the Payee.

Select Payees from the side navigation menu.

Locate the Payee you require by manually scrolling through the Payee List, entering the name into Search or using Show Advanced Filters.

Once the Payee has been located, select Actions > Edit.

🎯 Edit is unavailable if the Payee is included in an unposted Pay Run. To edit the Payee, the Payee must either be removed from the Pay Run or the Pay Run must be posted/reported to the ATO.

Select Employment and Payment.

Navigate to Pay Template.

Select Advanced Pay Template if you want to define the QTY and/or Rate the Payee must be paid.

🎯 Before selecting Basic, please ensure the Rate displayed for Ordinary Time is identical to the Rate displayed in Rate Per Hour. Please update the Rate Per Hour / Annualised Salary if these amounts differ.