Salary Sacrifice

Overview

In STP Phase 1, there was no requirement to report Salary Sacrificed amounts. As a result employee’s that sacrificed 100% of their salary were not included because their “Gross” was $0.00.

In STP Phase 2, the value of all salary sacrifice amounts, except those relating to Reportable Fringe Benefits or Exempt Foreign Employment Income are required to be reported as follows:

• Superannuation (S) - an effective salary sacrifice arrangement, entered into before the work is performed, where contributions are paid to a complying fund, where the sacrificed salary or wages are permanently foregone.
• Other Employee Benefits(O) – an effective salary sacrifice arrangement, entered into before the work is performed, for benefits other than for superannuation, where the sacrificed salary or wages are permanently foregone.

Salary Sacrifice arrangements can be setup using Allowances or Deductions depending on whether your organisation chooses to implement remuneration packages using a 'top-down' or 'bottom-up' approach.

Salary Sacrifice – Other Employee Benefits

The following configurations will be reported as Salary Sacrifice "Other Employee Benefits":

• Deductions
  • Taxable = Yes
  • Superannuation Deduction = No
• Allowances
  • Salary Sacrifice = Yes
  • Superannuation Allowance = No

Salary Sacrifice to Super

The following configurations will be reported as Salary Sacrifice “Superannuation”:

• Deductions
  • Taxable = Yes
  • Superannuation Deduction = Yes
• Allowances
  • Salary Sacrifice = Yes
  • Superannuation Allowance = Yes

Also see Superannuation

Topic: 44815