Applying Salary Sacrifice to an Employee Profile
Salary sacrifice is an arrangement between an employee and employer to make additional superannuation contributions from the employee's pre-tax wage each pay cycle. The employer makes additional contributions on the employee's behalf.
Salary sacrifice can be set up in 2 ways:
- By employees within their Employee App or,
- By Admin users on the employee's behalf in the Admin portal.
In this article, we will cover:
- Setting up Salary Sacrifice on behalf of an employee.
- How employees can set up Salary Sacrifice themselves in their Employee App.
- Salary Sacrifice and how it is displayed in reports.
For more information on Paying Superannuation in your platform, please refer to our Help article.
Employees do have the option to set up Salary Sacrifice from the Employee App, however many employees will prefer you to do this for them.
To set up Salary Sacrifice (before tax super contributions) in the Admin portal:
- In the quick menu navigate to People > Approved People or search the employee via the search menu.
- Locate the desired employee to go into their profile.
- Select the Financial icon > 'Superannuation' tab to expand the employee's superannuation details.
- Select the 'Edit' option to edit the employee's details.
- Locate the Salary Sacrifice settings, and enter as a % or $ amount. This will be the salary sacrificed amount per payslip (frequency).
- For example, if you entered $500 and the pay cycle was fortnightly, then $500 would be salary sacrificed each fortnight.
Select the green tick to save your changes.
Once the Salary Sacrifice percentage/amount has been specified in the relevant Employee Profile the Salary Sacrifice percentage/amount will then appear on the employee's payslips when pay is processed.
Your employees may prefer to set up their own Salary Sacrifice preferences, if so, they can do this in the foundU Employee App via View Profile > Edit financial details.
There are two options available:
- Salary sacrifice - Generally taken out of gross (before-tax) pay.
- Additional personal contributions - Generally taken out of the net (after-tax) pay.
Click here to check out our Employee guide for instructions on how employees can set up their own Salary Sacrifice preferences in the foundU Employee App.
Multiple options exist to gain insight into Salary Sacrifice, Employee Personal Super contributions and Employer Additional Super contributions.
The best option will be the Advanced payroll activity report (tick the box to Split Super Contribution types).
See our Payroll Activity Report (Standard and Advanced) guide for more information on reporting on Superannuation amounts.
You can also view Salary Sacrifice contributions made by the employee using the SuperStream Report.