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.
| PREVIOUSLY | NOW | |
| Salary | $2,000.00 | $2,000.00 |
| Salary sacrifice to superannuation | $250.00 | $250.00 |
| Salary after salary sacrifice |
$1,750.00 |
$1,750.00 |
| Salary for SGC calculation | $1,750.00 | $2,000.00 |
| SGC @ 9.5% | $166.25 | $190.00 |
Notes:
- 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.
Comments are now closed for this article.