Superannuation contributions made by employees are set up as deductions. Deductions may be made before tax as salary sacrifice (which reduces the employee’s PAYG tax liability) or after-tax — each requires a separate setup, as described below.
Set up an employee before-tax contribution (salary sacrifice)
Choose Setups, Payroll, Deductions, Maintain.
Enter in a Deduction Code and Description. For example, SALSAC and Salary Sacrifice Super respectively.
In the Type field, select the way in which the deduction will be calculated. See: Attaché Payroll Setups Help (PDF) specifically the Deduction Maintenance section for the definitions of each type of value.
As this contribution is to be made before tax, in the Tax Status field select Before Tax.
Set Part of OTE to either Yes or No as required.
Note: Setting the employee contribution deduction as Part of OTE will reduce the amount of the super guaranteed contribution. See: Example of OTE below.In the Tax Certificate Code field, select either:
1 = Include in Tax Certificate totals, or
6 = Reportable Super Cont. (RESC) if this is a Reportable Employer Superannuation Contribution. (See Reportable Employer Superannuation Contributions below).
When setting up a RESC contribution, set the Include RESC check box in the employee Masterfile (Masterfiles, Payroll, Employee Details, Maintain) to Yes if you need to include RESC amounts as part of the employee’s total income for the calculation of HELP and SFSS payments (this does not affect the calculation of ordinary tax, which is based on taxable pay).
Complete the remaining fields as required and then choose Accept (F9) to save.
Example of OTE
Assuming an income of $1,000 and an employee contribution deduction of $350.
If Part of OTE is set to Yes then superannuation will be calculated on an amount of $650 (that is, $1,000 - $350).
If the percentage set in Employer Contribution/Super Maintenance is 11.5%, then the super guarantee contribution will be 11.5% of $650, which equals $74.75.
However, if Part of OTE is set to No then the 11.5% Super Guarantee contribution is calculated on $1,000 (which is $115.00).
Reportable Employer Superannuation Contributions (RESC)
Are certain contributions to a super fund made on behalf of the employee by their employer, for example, salary-sacrificed contributions. For more information refer to the ATO guide Reportable employer super contributions which you can obtain from the ATO website at www.ato.gov.au.
To report on Superannuation reports and ClickSuper
In Deduction maintenance (Setups, Payroll, Deductions, Maintain), select the new salary sacrifice superannuation deduction code as set up above.
Tick Use Employee Other Accounts. (By ticking this checkbox, the Employee Super/Other account code will be available in timesheet and in the Standard pay entry/maintenance screens).
From Payroll, Masterfiles, Super/Other Accounts, Maintain, set up a separate Super/Other Account code for your salary sacrificed amounts i.e. ADAL01SS, so it clearly identifies these amounts as salary sacrifices.
Go to Payroll, Masterfiles, Employee Standard pays, Maintain, select the employee and Accept (F9).
Edit the salary sacrifice deduction line and make sure you select the salary sacrifice Super/Other Account code from the Employee Account Code field.
Click Finish and Yes to save. Your salary sacrifice deduction will now display on Super reports and ClickSuper.