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keeperdavid
Level 3
posted
‎June 12, 2020 07:36 PM
last updated ‎June 12, 2020 2:56 AM

Pay Run Errors in Salary Sacrifice

 

We are having a problem with pay runs that include a salary sacrifice superannuation payment.

The system is incorrectly allocating salary sacrifice payments to the PAYG Withholdings Payable account, which is normally reserved for Income Tax Withholding payments that are owed to the ATO.

 

How can this be fixed so that pay runs created in the "Employees" tab correctly record the superannuation liability to the Superannuation Payable liability account?  

 

Thanks for any help you can provide!

David

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Best answer June 12, 2020
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keeperdavid
Level 3
‎June 12, 2020 07:59 PM

Pay Run Errors in Salary Sacrifice

Apologies for the double post, but we've just realized how to fix this, and I thought I'd leave this information here for others who might have the same question:

 

  1. Click on the "Employees" tab.
  2. Select "Payroll Settings."
  3. Select "Chart of Accounts."
  4. Select "Deduction Categories."
  5. On the line "Salary Sacrifice Super" click on "Not specified" (or the incorrect account) and then select the correct account (e.g., "Superannuation Payable").
  6. Click "Save."

 

That fixed the issue for us! We did a test pay run, and everything was correct.

Hope this info helps someone.

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8 Comments 8
keeperdavid
Level 3
‎June 12, 2020 07:59 PM

Pay Run Errors in Salary Sacrifice

Apologies for the double post, but we've just realized how to fix this, and I thought I'd leave this information here for others who might have the same question:

 

  1. Click on the "Employees" tab.
  2. Select "Payroll Settings."
  3. Select "Chart of Accounts."
  4. Select "Deduction Categories."
  5. On the line "Salary Sacrifice Super" click on "Not specified" (or the incorrect account) and then select the correct account (e.g., "Superannuation Payable").
  6. Click "Save."

 

That fixed the issue for us! We did a test pay run, and everything was correct.

Hope this info helps someone.

Reply
shar154
Level 1
‎January 04, 2022 04:53 PM

Pay Run Errors in Salary Sacrifice

Thanks for posting this @keeperdavid. Your instructions were very helpful. I too am having the problem of my salary sacrifice not showing up as a liability in my Chart of Accounts (under Superannuation Payable)

 

I did have trouble with step 6 in your instructions. When I open the drop down box by clicking "Not specified", quickbooks does not allow me to add or select anything else other than "No liability account selected".  I want to select "Superannuation Payable", which does exist in my Chart of Accounts, but typing it in results in "No Matches found" (see attached screenshots).

 

Any guidance on this will be super helpful!

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keeperdavid
Level 3
‎January 04, 2022 05:13 PM

Pay Run Errors in Salary Sacrifice

Sorry, @shar154 , but I'm not able to replicate the problem on our system in order to help you.

When I click on the down arrow under "Liability Account" for any of the deduction categories, a dropdown list appears with several accounts listed under headings of "Recommended Accounts" and "Other Accounts."

 

The problem sounds as though the Payroll app is not aware of all of your accounts.

Have you already clicked the "Import Accounts" button on the top right?

I can't remember if we ever did that, but that's the only thing I can see on the screen that might allow the Payroll app to see all of your accounts.

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shar154
Level 1
‎January 04, 2022 05:13 PM

Pay Run Errors in Salary Sacrifice

I solved the issue I had with step 6 in my previous message.

 

This is what I did, in case someone else had the same problem.

If you don't see any accounts to select from, make you sure import the necessary accounts first, using the "Import Accounts" button on the top. In my case I imported "Superannuation Payable" and "Superannuation Expense", so I can add these as a Liability and Expense Account for the Salary Sacrifice deduction.

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shar154
Level 1
‎January 04, 2022 05:15 PM

Pay Run Errors in Salary Sacrifice

Hi @keeperdavid 

Thanks for your reply. I did end up solving the problem as per your suggestion using Import Accounts. :)

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keeperdavid
Level 3
‎January 04, 2022 05:16 PM

Pay Run Errors in Salary Sacrifice

Excellent. Glad it worked out for you!

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user15775
Level 1
‎June 11, 2022 04:01 PM

Pay Run Errors in Salary Sacrifice

Hi

I was just wanting to see what your payroll journals look like.  Are you able to send a screen shot as I want to make sure my accounts are correct.

Thanks

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keeperdavid
Level 3
‎June 11, 2022 08:43 PM

Pay Run Errors in Salary Sacrifice

Here's an example of the type of journal we have in our system when running payroll.

(Amounts are for illustration.)

 

Memo/DescriptionAccountDebitCredit
Wages expense for pay period ending 31/05/2022Wage Expenses10,000.00  
Wages and Salary for pay period ending 31/05/2022Payroll Clearing 7,000.00 
PAYG Liability for pay period ending 31/05/2022Tax Liabilities:PAYG Withholdings Payable 2,200.00 
Salary Sacrifice Super Liability for pay period ending 31/05/2022Superannuation Payable 800.00 
Superannuation Expense for pay period ending 31/05/2022Superannuation Expenses1,000.00  
Superannuation Liability for pay period ending 31/05/2022Superannuation Payable 1,000.00 
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