In this edition:
From January 1st 2020, employers are required to make provision for the Superannuation Guarantee (SG) on the gross amount an employee earns, including any salary sacrificed arrangements (SSA), where previously the salary sacrifice amount may have been used to reduce the SGC.
For those clients using the Xero platform for payroll services, there are a couple of things to check to ensure the file set up is compliant from the start of the year.
Currently there are 4 options to choose in Xero for Superannuation:
Prior to Jan 1st 2020, within the Xero employees pay template, a check box had to be ticked to indicate a reduction of SGC.
The easiest method is to go to the Employees Pay Template and clear the "Reduces SGC" checkbox and click SAVE at the foot of the page.
Xero have taken the initiative to roll out a new feature that highlights, when initiating a payrun, any employees where SSA had previously been nominated to reduce SGC and prompts you review that data to ensure compliance.
If you have questions in relation to the changes to Salary Sacrifice and Superannuation Guarantee Changes, and how they affect your business and/or employees, please do not hesitate to contact your advisor.
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