Australia Payroll Training

Australia Super Sacrifice

Salary Super Sacrifice set up

What is Super Sacrifice?

Salary sacrificing is a pre-tax contribution from employee's income to their super account, contributed in addition to the mandatory Employer Super contribution made. The amount the employee chooses comes out before he or she is paid, reducing the taxable income and providing a tax benefit. 


Setting up Super Salary Sacrifice for employees

Payroll team will receive the lump sum salary sacrifice advice from employee before 30th November each year to generic payroll email box which will create as case in sales force. Below is the format of the advice

Look for the employee Super form in the Case attachments. Download the form and identify the Super sacrifice percentage or amount the employee has opted to have set up as deduction. 

Points to remember

Employee can opt:

a. To have additional voluntary contribution  either in amount or percentage

b. Employee must select option as before tax

 c. Employee must stop date on the form if the amount needs to be sacrificed in the year. If employee does not mention the date in the form then deduction will be continued to be made of Bonus pay run (MIP, SIP, LIP etc.) until we receive stop notification from employee. 

Please view the sample form below: 

Quiz

What are the points to look for when you get employee Super sacrifice form?


  • Voluntary contribution updated in percentage or amount
  • Is there an end date for the Super sacrifice set up requested
  • Employee ID updated in the form
  • Is the Before tax option selected in the form
  • The Super provider address information

SAP record - Super Fund v/s Defined Benefit Fund

Super fund and Defined Benefits Fund Salary sacrifice setup

Most of the employees in Honeywell have the enrollment done to one of the Super funds available in the market. The employees can choose to either enroll in AMP, Honeywell default Super fund provider, any other super fund available in the market or in Self Managed Super fund (SMSF). 

There are a few employees who are enrolled in the Defined Benefits fund scheme, though this is not an option offered to new employees anymore. The employees who have current DBF enrollment are entitled to set up salary sacrifice. 

Mentioned below is the differentiating factor between Super fund or accumulation funds and Defined Benefits fund for your understanding. 

Setting up Super Fund Salary Sacrifice

Setting up Super Sacrifice in SAP - Super Fund

Payroll team will create new record in SAP using the below Transaction code:

 >> PA30 >> info type 220 >> Over View and update the salary sacrifice amount or % with effective of current pay period start date.

1. If employee is in AMP or other Super funds, copy create existing record and update details 

2.  The existing employees in Defined Benefit fund can choose to have a salary sacrifice set up as well. 

3. The process for setting up Salary sacrifice stays the same for Super Fund/DBF employees. 

Super Salary sacrifice for fixed period

Salary sacrifice set up for specific period 

In certain situations, the employees request that salary sacrifice be set up only for a specific period. For eg., an employee might request to have super salary sacrifice set up during a quarter during which she receives monthly bonus payment. This would enable her to have additional contribution made to her super fund account. 

In such situations, it should be ensured that the employees mention the end date in the form. If not, please update the end date to be the end date of the pay cycle when the bonus payment ceases. 


Quiz

What is the SAP Transaction Code used for Salary sacrifice setup .

  • PA30
  • ZRADP_M99_CPREG
  • ZRADP_M99_ITDL

Quiz

New employees can have Defined Benefit fund enrollment and have salary sacrifice set up 

  • True
  • False

Quiz

Employees cannot have salary sacrifice set up for specific periods

  • True
  • False

Quiz

What are the options employees can choose while setting up salary sacrifice

  • Salary sacrifice amount can be set up as fixed amount
  • Salary sacrifice can be set up as percentage
  • Salary sacrifice can be set up to not be deducted in only specific months
  • Salary sacrifice can be set up for specific period
  • Salary sacrifice can be set up as after-tax deduction