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  • Reporting and record keeping

    Reporting

    You must report salary-sacrificed amounts on your employee's annual payment summary at the label Reportable employer superannuation contributions.

    Even though the contributions are not included in your employee's assessable income, they are included in the income tests for some benefits and obligations, such as:

    • deductions for personal super contributions and non-commercial losses
    • super co-contribution
    • Medicare levy surcharge
    • a range of Centrelink and child support benefits and obligations.

    Salary-sacrificed super contributions to a complying super fund are not fringe benefits. This means they should not be included on your employee's payment summary as reportable fringe benefit amounts.

    Example: Salary sacrifice reporting

    Zoe starts work on 1 July 2018. She and her employer have agreed to a salary sacrifice arrangement under which the employer will contribute an extra $2,500 per quarter to Zoe's super fund. Her employer is also required to make super guarantee payments of $1,187.50 per quarter.

    Zoe's employer makes the contributions to her super fund on the super guarantee quarterly cut-off dates – that is, on 28 October 2018, 28 January 2019, 28 April 2019 and 28 July 2019.

    Zoe's employer must report the employer contributions in excess of the minimum super guarantee amounts (that is, the salary sacrifice amounts) on Zoe's annual payment summary as reportable employer super contributions.

    Reportable employer super contributions are reported for the year they accrue, not the year they were paid. This means all four of the 2018–19 contributions are included in the 2018–19 report, even though the last contribution was actually paid in the 2019–20 financial year.

    Calculation of reportable employer super contributions

    Item

    Calculation

    Value

    Employer's total contributions

    $3,687.50 × 4

    $14,750

    Less Zoe's super guarantee entitlement

    $1,187.50 × 4

    $4,750

    Reportable employer super contributions 2018-19

    -

    $10,000

     

    End of example

    See also:

    • Reportable employer super contributions – for employers

    Records you need to keep

    When you enter into a salary sacrifice agreement you need to keep relevant documentation for five years. This includes:

    • copies of your agreement
    • documents showing any expenses.

    See also:

      Last modified: 20 Dec 2019QC 17235