Reportable Employer Superannuation Contribution (RESC)

Reportable Employer Superannuation Contribution (RESC) was introduced from 01/07/2009. RESC is the portion of the amount contributed by an employer to an employee's superannuation fund or retirement savings account, where the employee influenced the amount contributed or how the amount was contributed so as to reduce their assessable income.

For example, the employee could have successfully negotiated for:

1. Contributions over 9.5%.
2. Contributions to be made below the monthly minimum earnings amount and/or above the maximum quarterly earnings threshold.
3. Contributions to be made through a salary sacrifice arrangement (not covered in this manual).

RESC amounts need to be identified because the ATO and other agencies need to add RESC to employees’ reported Gross Payments when they conduct income (means) tests.

Before RESC was introduced, salary sacrificing of superannuation could reduce an employee’s assessable income to a level where they could be entitled to benefits to which they would not otherwise be entitled or decrease their obligations to programs such as Child Support.

Further Reading: See Employer guide for reportable employer super contributions on the ATO website: http://www.ato.gov.au/Business/Employers-super/In-detail/Salary-sacrifice/Employer-guide-for-reportable-employer-super-contributions/

Identifying RESC Employees

You have to identify RESC employees based on your knowledge of past negotiations with the employee and any special conditions or agreements made with the employee.

Important: Exolvo cannot tell you how to identify RESC employees because only the employer can determine whether the employee has had influence.

To help identify RESC employees, you could:

1. Run an Employee Super Funds grid report to identify employees who receive contributions over 9.5%.
2. Determine whether any employees had influence, such as through an Individual Employment Agreement (IEA) or negotiation.

Topic: 24508