Just a reminder that new payment summary reporting obligations have been introduced as a result of the recent income test reforms.
An employer who makes Reportable Employer Superannuation Contributions (RESC) on behalf of an employee is required to disclose the total amount on the employee’s payment summary for the year. This commenced 1 July 2009 so it will affect Payment Summaries issued this year.
Common examples of contributions that qualify as RESCs include:
- salary sacrificed contributions (made under a salary sacrifice agreement in excess of the 9% Super Guarantee)
- contributions under employment contract or obligation (again, these would be contributions in excess of the 9% SG made as part of an agreement to the renumeration package).
Contributions not required to be disclosed on the payment summary include your usual 9% Super Guarantee (SG) contributions and contributions under an industrial award.
In addition, bosses will need to provide details of RESCs made for employees as part of the yearly withholding report sen to the ATO by 14 August each year.
The RESC concept is one of the biggest changes to the income test reforms since RESCs will be included in income tests for means-testing a wide range of tax-related concessions and obligations (certain tax offsets and deductions, the Medicare Levy surcharge).
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Article by Christie Lewis
Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.
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