Employers whose employees make salary sacrificed super contributions (or other "employee influenced" superannuation contributions) are obligated to report these amounts on the 2011 PAYG payment summaries. Whilst these amounts are not included in the taxable income of the individual, they are used to calculate various tax offsets.
As this is a complex area of reporting we suggest that, if you have any doubts on how to complete the summaries, you contact us before issuing them to your employees.
Failure to report these amounts correctly can be a costly exercise to rectify in terms of time and money.
Click here for more information on reportable employer superannuation contributions.
A reminder to employers that, when preparing PAYG summaries, the value of any reportable fringe benefits must be shown on each employee's PAYG summary.
We have previously forwarded a schedule of reportable fringe benefits containing details of these amounts to those clients for whom we have prepared a fringe benefits tax return.
Please note that there is no reportable fringe benefit when the value of the fringe benefit is reimbursed, as opposed to when fringe benefits tax is actually paid.
Please contact us with any queries.
If employees lodge a flood levy exemption declaration, then you will not be required to withhold this extra amount.
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This Newsletter, of necessity, has dealt with matters of a technical nature in general terms only. Clients should contact us for detailed information on any of the items in the Newsletter. No responsibility for loss occasioned to any person acting or refraining from acting in reliance upon any material in this Newsletter can be accepted by any member or employee of the firm.