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shereey
December 9, 2021
Question

Payroll, STSL & Salary Packaging

  • December 9, 2021
  • 1 reply
  • 0 views

We are a NFP and have salary packaging.  Our deductions are set up under - Deduction Categories/Salary Sacrifice/Pre-tax deduction.  

All works well. 

However it appears that our staff that have both salary packaging and an STSL debt, the STSL repayment is not being calculated at the gross amount, but is calculated on the net of the gross less salary packaging deduction. 

This is even though our system is set up to calculate STSL on 'repayment income'.

Have we set this up incorrectly or missed ticking a box somewhere?

1 reply

I
IntuitSheila
December 9, 2021

Thanks for the information, shereey.

 

The STSL calculation is based on how you set up the deduction in your payroll account. All new employees with an STSL debt will default to the taxable earnings calculation method. This can still be changed to the repayment income calculation from the employee's Tax File Declaration page. Here's how:

 

  1. Click on the Employees tab.
  2. Click on the employee name.
  3. Click on Tax File Declaration.
  4. Check the Tax calculation set up of the employee

 

Furthermore, employees can choose to have their STSL calculated using:

 

  1. Calculated on taxable earnings.
  2. Calculated on repayment income.

If the employee selected the STSL to be calculated on taxable earnings you'll see gross earnings and taxable earnings on the pay run. If there's a salary sacrifice added the STSL will show in the pre-tax deductions column and will reduce the employee's taxable earnings. For more information about STSL calculation in the pay run please check this support article.

 

If the issue remains, we'd recommend contacting our Customer Care Experts to further check your payroll set up in a secure form as we're in a public space.

 

As always message us back if you need more help with QuickBooks Online. I'm here to help you.

 

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