We have charity status so are able to offer our staff salary packaging for cash exempt FBT payments. We pay superannuation on the total gross, not the reduced OTE amount by our staff who are accessing salary packaging. How do we now report QE correctly as we are paying above the nominal amount of super, and this amount would now need to be classed as additional super?
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We have identified an issue with Maximum Contribution Base (MCB) capping.
Where is the Pay Day Super - STO2 Template
As per attached ATO in regard to MCB is $270,830, will Chris 21 update to the nearest $10 multiple so it's exactly $32500 for high income earners in the TXP screen. (under maximum super contribution base)
After selecting STP Maximum Super Contribution Base Capping in CFP, we have identified issue in how system applied capping.
We created a new allowance code MCBE and in the CAL it shows MCBE will be paid in excess, however in CPA screen, it doesn't show?
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Thanks for your query. May we have an example or two that we can use to further answer your question. You can do so by replying to this post.
For example:
Employee Gross Wage $1200
Deduction to Salary Packaging Provider for FBT Cash Exempt Payment (General Expenses) $200
OTE Reduced to $1000
By ATO Legislation, we are only obliged to pay Super on $1000, but as a company choose to pay super on the full Gross amount of $1200.
Therefore QE would need to be represented to the ATO as $1000.
We currently have the FBT Cash Exempt amount set up as a deduction, the only way I can think to do this would be to set it up as an allowance and put the negative amount to QE to come off the gross. Would this be correct?
Thank you. Shared with the team.
This is the same issue that I have raised in relation to novated lease deductions earlier
Thanks Donna - I can't see that you got a response about this, have you been able to solve it?
New functionality is about to be released that will allow the reduction of QE based on a deduction (e.g. Salary Packaging Provider for FBT Cash Exempt Payment). Version 8.37.11 will contain this change. Client communique to be issued in the week starting Monday 18th July.
So we won't be reporting correctly from 1 July until we have the further upgrade?
I haven't but the response below was the confirmation I was waiting on
Hi Donna, We understand your concern. In fact, the date we reported yesterday was incorrect. Please accept our apologies.
We are aware of the urgency of the issue and as a result a further upgrade is anticipated to be released on or around Monday May 18th (8.37.11) subject to passing our Quality Assurance processes. This upgrade will enable clients to select deductions that reduce the QE amount, and ensure correct reporting.
Thank you, I shared Donna's concern regarding the dates stated yesterday and pleased to hear this has been escalated to come earlier.
Thanks forthe response. I'm relieved to hear that!
I cannot see how to start a new topic but I have run a pay run in test, the STO2 report doesn't show any super paid if the fund is closed during the year? Why not? We will then be reporting to the ATO we havn't paid super when we have paid it?