News Item

Further clarification of Reportable Employer Super Contributions (RESC)

Reportable Employer Super Contributions is for contributions BEFORE-TAX and NOT AFTER-TAX

Therefore if an employee asks for additional superannuation to be taken from net pay, then this is NOT a reportable super contribution, but if an employee asks for additional super (salary sacrifice) to be taken before tax , then this is reportable employer super contributions.

Examples:
If an employee is receiving 14% super which is part of their award or workplace agreement then the 5% is NOT RESC

If the employee is asking for super to be deducted after tax NOT RESC

If employees award states 9 % but they have elected to have a further $100 super per month deducted and paid to super before tax YES RESC

If an employee chooses to have 50% of their salary put to super before Tax YES RESC

See ATO link for further information:
http://www.ato.gov.au/businesses/content.asp?doc=/content/00189411.htm&page=13&H13