Description
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Description
As of 1 July 2020 it is no longer legal for employers to reduce their superannuation guarantee liability if payees salary sacrifice gross earnings into superannuation, all salary sacrifice superannuation contributions are effectively over and above the contribution amounts that are mandated under the superannuation guarantee (SG) scheme or a minimum employer contribution amount that is specified by an industry award and are therefore considered Reportable Employer Superannuation Contributions (RESC).
Because of this, the existing RESC field on the Payroll > Maintenance > Deduction Header > Add/Edit Deduction Header > Deduction Settings > Deduction Settings Entry screen for Payee Superannuation deductions is now display-only at all times, even if the deduction header has no last used date. If the deduction header is configured to deduct from gross earnings, the RESC field is ticked on and cannot be toggled off, as shown in Figure 1 below.
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Figure 1: Deduction Header - RESC Field
If the deduction header is configured to deducted from net earnings, the RESC field defaults to the unticked state and cannot be ticked on. That is because superannuation contributions taken from net earnings are never classified as Reportable Employer Superannuation Contributions.
In conjunction with this change, the RESC field on the Payroll > Payee > Payee Entry > Deductions > Deduction Details screen (see Figure 2 below), for payee deductions that are linked to a deduction header where the deduction type is Payee Superannuation, has also been enhanced so that it is now always display-only and defaults to the ticked or unticked state depending on whether the deduction is configured to deduct from gross or net earnings respectively.
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Figure 2: Payee Superannuation Deduction - RESC Field
Benefits
This enhancement ensures that superannuation salary sacrifice deductions cannot be mistakenly misclassified as non-reportable by superannuation contributions.
Configuration
No configuration required.
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For any payee superannuation deduction header settings that have been created prior to upgrading and that have a validity start date of 01/07/2020 or later, the RESC field will automatically be ticked on once your system has been upgraded if the deduction header is configured to deduct from gross earnings and the RESC field was not ticked on prior to upgrade. Likewise, the RESC field will automatically be unticked once your system has been upgraded if the deduction header is configured to deduct from net earnings and the RESC field was ticked on prior to upgrade. |