What is Salary Sacrifice?
The purpose of this article is to explain how to set up a before tax deduction for employees who have a salary sacrificing arrangement. The employee has a deduction set up specifically to reduce their taxable or gross income.
Examples of salary sacrifice would be an employee salary sacrificing for a computer, car, mortgage, rent, etc. This article does NOT relate to Superannuation Salary Sacrifice.
Setting Up Salary Sacrifice
- Go to Setup> Allowances > Add> Next> Standard Allowance> Next
- Description: The words Salary Sacrifice or SalPac at the start of the description will enable the allowance to report correctly in Wagemaster i.e. if the salary sacrifice is for a laptop then Salary Sacrifice Laptop would be appropriate.
- Type: Deductions
- Taxed: Must be ticked
- Frequency: Each Pay
- Amount: Per pay dollar value of the salary sacrifice
- Click close to save.
- After creating the Salary Sacrifice allowance, the allowance will need to be added to the Employee file> Payments> Allowances> Add
Optional Next Step:
Setup Additional Superannuation Contribution
Skip And Continue To: Setup Leave Accruals