Salary sacrifice – employer superannuation obligations
Where an employee has an effective salary sacrifice arrangement in place, it is now mandatory for employers to calculate the superannuation guarantee charge of 9.5% on the gross, before salary sacrifice salary of the employee eg.
|Salary sacrifice to superannuation||$250.00||$250.00|
|Salary after salary sacrifice||
|Salary for SGC calculation||$1,750.00||$2,000.00|
|SGC @ 9.5%||$166.25||$190.00|
- The salary sacrificed superannuation needs to be recorded on the annual payment summary as reportable employer superannuation contributions (RESC)
- The salary sacrificed amount can not be included as part of the employer’s superannuation guarantee charge.
The changed basis for calculation of an employer’s superannuation guarantee charge was introduced from 1 January 2020 hence adjustment may need to be made in respect of any salary sacrifice arrangement in place on and from that date.