18 February 2020
For some employees, sacrificing part or all of their salary to a complying superannuation fund is a great way to boost retirement savings. But two recent changes may affect your obligations as their employer.
These changes, effective from 1 January 2020, relate to how you work out your superannuation guarantee (SG) obligations when an employee makes super contributions by salary sacraficing. The changes are:
If you haven't already done so, revisit your agreements with employees to make sure you're meeting the new rules and paying the right amount of SG. This may include checking and updating your systems to make sure they calculate the SG amount correctly.
You can continue to claim a tax deduction for salary sacrificed super contributions and the sacrificed amounts won't be subject to fringe benefits tax.
Remember, registered tax agents and BAS agents can help you with your tax.
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