Pay Types - Deductions (Salary Sacrifice)
Single Touch Payroll Phase 2 has resulted in changes to Deduction reporting. Previously, only salary sacrifices for superannuation were itemised separately. An * indicates a Triple; otherwise, it is a Fact within the STP file used when reporting to the ATO.
There are five Deductions in the Salary Sacrifice category,
| Description | Include in W1 (Total of Salary, Wages & other payments); | Taxable | OTE (SGAA) | Salary Sacrifice Type Code (PAYEVNTEMP266) |
Deduction Type Code (PAYEVNTEMP10) |
Reported as |
|---|---|---|---|---|---|---|
| Salary Sacrifice (to Super Fund, OTE) |
Yes Reduces Gross |
Yes Reduces Gross |
Yes | S | Salary Sacrifice (PAYEVNTEMP265)* |
|
| Salary Sacrifice (to other benefit) |
Yes Reduces Gross |
Yes Reduces Gross |
No | O | Salary Sacrifice (PAYEVNTEMP265)* |
|
| Salary Sacrifice (to other benefit, OTE) |
Yes Reduces Gross |
Yes Reduces Gross |
Yes | O | Salary Sacrifice (PAYEVNTEMP265)* |
|
| Salary Sacrifice (to Workplace Giving) |
Yes Reduces Gross |
Yes Reduces Gross |
No | O | Salary Sacrifice (PAYEVNTEMP265)* |
|
|
|
Yes Reduces Gross |
Yes Reduces Gross |
Yes | O | Salary Sacrifice (PAYEVNTEMP265)* |
Salary Sacrifice Deductions Explained.
Salary Sacrifice (to other benefit)
Salary Sacrifice (to other benefit) applies when you have established an effective salary sacrifice arrangement and the Payee requests to forego part (either percentage or dollar value) or all of their salary or wages for other approved items such as a novated lease (Fringe Benefit) or a portable electronic device (Exempt Benefit). Please visit the ATO's Website to learn more about the requirements for an effective salary sacrifice arrangement and the types of benefits that can be included.
The reporting of payments for Salary Sacrifice (to other benefit) are now included per the Australian Taxation Office Single Touch Payroll Phase 2 guidance. Salary Sacrifice (to other benefit) is reported separately under Salary Sacrifice Type Code = O.
Payments with this Deduction use the $ (or % of Rate Per Hour) set within the Deduction. These payments are considered W1 (Total of Salary, Wages, and other payments) and Taxable; however, they are not OTE (SGAA).
Salary Sacrifice (to other benefit, OTE)
Salary Sacrifice (to other benefit, OTE) applies when you have established an effective salary sacrifice arrangement and the Payee requests to forego part (either percentage or dollar value) or all of their salary or wages for other approved items such as a novated lease (Fringe Benefit) or a portable electronic device (Exempt Benefit). Please visit the ATO's Website to learn more about the requirements for an effective salary sacrifice arrangement and the types of benefits that can be included.
The reporting of payments for Salary Sacrifice (to other benefit, OTE) are now included per the Australian Taxation Office Single Touch Payroll Phase 2 guidance. Salary Sacrifice (to other benefit, OTE) is reported separately under Salary Sacrifice Type Code = O.
Payments with this Deduction use the $ (or % of Rate Per Hour) set within the Deduction. These payments are considered W1 (Total of Salary, Wages, and other payments), Taxable and OTE (SGAA).
Salary Sacrifice (to Super Fund, OTE)
Salary Sacrifice (to Super Fund, OTE) applies when you have established an effective salary sacrifice arrangement and the Payee requests to forego part (either percentage or dollar value) or all of their salary or wages which the Payer contributes into their Superannuation Fund at the end of the reporting period. Please visit the ATO's Website to learn more about Salary Sacrifice to Superannuation and the requirements for an effective salary sacrifice arrangement.
The reporting of payments for Salary Sacrifice (to Super Fund, OTE) are now included per the Australian Taxation Office Single Touch Payroll Phase 2 guidance. Salary Sacrifice (to Super Fund, OTE) is reported separately under Salary Sacrifice Type Code = S.
Payments with this Deduction use the $ (or % of Rate Per Hour) set within the Deduction. These payments are considered W1 (Total of Salary, Wages, and other payments), Taxable and OTE (SGAA).
Salary Sacrifice (to Workplace Giving)
Salary Sacrifice (to Workplace Giving) applies when you have established a workplace giving program per ATO guidelines and have chosen to reduce the amount of PAYG withholding. Please visit the ATO's Website to learn more about Workplace giving programs.
The reporting of payments for Salary Sacrifice (to Workplace Giving) are now included per the Australian Taxation Office Single Touch Payroll Phase 2 guidance. Salary Sacrifice (to Workplace Giving) is reported separately under Salary Sacrifice Type Code = O.
Payments with this Deduction use the $ (or % of Rate Per Hour) set within the Deduction. These payments are considered W1 (Total of Salary, Wages, and other payments) and Taxable; however, they are not OTE (SGAA).
Salary Sacrifice (to Workplace Giving, OTE)
Salary Sacrifice (to Workplace Giving, OTE) applies when you have established a workplace giving program in accordance with ATO guidelines and have chosen to reduce the amount of PAYG withholding. Please visit the ATO's Website to learn more about Workplace giving programs.
The reporting of payments for Salary Sacrifice (to Workplace Giving, OTE) are now included per the Australian Taxation Office Single Touch Payroll Phase 2 guidance. Salary Sacrifice (to Workplace Giving, OTE) is reported separately under Salary Sacrifice Type Code = O.
Payments with this Deduction use the $ (or % of Rate Per Hour) set within the Deduction. These payments are considered W1 (Total of Salary, Wages, and other payments), Taxable and OTE (SGAA).
