We have a few employees that have a salary sacrifice agreement.
Their super is being calculated as a fixed amount, which is calculated at the maximum contribution limit.
This amount is higher than 9.5% of their wages, but less than 9.5% of the wages+benefits.
Is the amount above the 9.5% of the wages need to be treated as RECS?
Or, since it's below the 9.5% of wages+benefits, it does not need to be reported at all?
Hi @MayaMel,
They are not all regarded as RESC over and above the 9.5%. The link advises they may be reportable and they may be non reportable. It is up to you to ascertain what agreement your employee is under and what conditions they meet in regards to receiving the amount above the 9.5%.
For example, you could pay more super than required because of:
If your employee cannot influence these contributions, they are not reportable. It does not matter if the employee is employed under a collectively negotiated industrial agreement or individual employment contract.
However any amounts salary sacrificed by your employee are regarded as such and would be included as RESC as @Glenn4802 has advised.
Please have a read through the link for further guidance.
If you require further assistance please let us know.
All the best.
1,223 views
3 replies