Hi, my employer is changing payroll systems and the new system calculates the fortnightly STSL withholding based amount on a calculated “Repayment Income” which includes salary sacrifice amounts for superannuation.
I am of the understanding that the amount that the employer is required to withhold for the STSL component is calculated on the same basis as the normal PAYG withholding amount (i.e. after any salary sacrificing amounts are deducted). The providers of our new software insist that their system calculates the STSL withholding amount correctly and continually refer me to this web page: https://www.ato.gov.au/rates/help,-tsl-and-sfss-repayment-thresholds-and-rates/#HELPandTSLrepaymentthresholdsandrates201
Can someone from the ATO confirm the correct base for the employer to use to calculate the fortnightly STSL withholding amount (i.e. is the STSL withholding amount calculated on the basis of a “repayment income” amount which includes salary sacrifice amounts, or a “taxable fortnightly gross” amount which excludes any salary sacrifice amounts)?
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