Reporting of reportable employer superannuation contributions
For the 2009-2010 financial year and all future years, paying salary sacrifice and extra super for your employees may affect an employer reporting and payroll system.
All employers who paid employer contributions to a superannuation fund on behalf of the employee are required to work out how much of this to show on the employees’ PAYG Payment Summary.
These contributions are called Reportable Employer Superannuation Contributions.
These are defined as the any contributions where your employee influenced the rate or the amount of super an employer contribute for them.
The contributions are additional to the compulsory contributions an employer must make under either:
- Super guarantee law (9%)
- An industrial agreement
- The trust deed or governing rules of a super fund
- A federal, state or territory law
Please note, the 9% of the compulsory employer superannuation contributions are not required to be reported on the PAYG Payment Summary.
Note that although employers must include all reportable employer super contributions they make on behalf of their employees on their payment summary, employers do not include these contributions in their employee’s gross income.
The amount at this label will not affect your income tax liabilities but it will be counted for income tested benefits such as Family Tax Benefit, certain rebates, super co-contributions, HECS repayments and deductions for personal super contributions.
This article has been prepared for the purposes of general information and guidance only. It should not be used for specific advice or used for formulating decisions under any circumstances. If you would like specific advice about your own personal circumstances please contact your accountant or us, of course.