How to Report Salary Sacrifice for STP Phase 2

Payslips created in Easy Payslip with payment dates on or after 1 July 2023 will be sent to the ATO using the new STP Phase 2 lodgements.

One of the new requirements of STP Phase 2 is that employers report salary sacrificed benefits.

To do this in Easy Payslip, you need to add one of these types of Salary Sacrifice to a payslip:

1. Salary Sacrifice (Super) - Click the Super option on the Process Payroll screen

2. Salary Sacrifice (Other) - Click the Deductions option on the Process Payroll screen

To ensure this is reported correctly, you first need to include the sacrificed amounts as wages, and then deduct them using one of the salary sacrifice options. You can see an example of this below, where the employee has salary sacrificed benefits worth $2,000 total ($500 for a car, $1,500 for housing):

1. Add the amount of Salary Sacrificed wages/salary as either:

   1. Base Wages (i.e. include the benefit amount in the overall wages amount)

   2. One or more Wages items with a description, for example:

      1. 'Wages - Per Job/Unit' - 1 x $2,000 with a description of “Exempt Benefits“

2. Add a Deductions/Salary Sacrifice (Other) for each deductible benefit with a description of the benefit, for example:

   1. Salary Sacrifice Other - Car $500

   2. Salary Sacrifice Other - Housing $1,500

The payslip then will look like this:

For STP Phase 2, the important things are:

• The pre-sacrifice ‘Gross Earnings’ of $3,442.31 will be reported as ‘Gross Income’

• The $2,000 of ‘Salary Sacrifice - Other’ will be reported in a special ‘Salary Sacrifice’ record

• As usual, the total Super contribution is reported in a special Super record

From a PAYGW and Super point of view:

• PAYGW is not withheld on the $2,000 of wages that are salary sacrificed

• Super is calculated on the $3,442.31 earnings, which includes the $2,000 salary sacrifice amount