This means that the salary sacrificed is not taken into account in your super-guarantee obligations (SG). It is advisable that you and your employee prepare and sign a document clearly stating all the terms of the salary sacrifice agreement. If you enter into an undocumented wage sacrifice agreement, you may have difficulty establishing the facts of your agreement. The Fair Labour Commission regulates contracts and working conditions. To verify your terms and conditions, please contact Fair Work CommissionExternal Link. Wage victims is an easy way for you to make extra payments in your super. By agreement with your employer, your employer redirects part of the salary (before taxes) to your super-account. If you pay in super-wage victims, you can agree with your employer to pay part of your salary or salary before taxes are deducted from your account instead of your bank account. This is a personal contribution you make in addition to your employer`s mandatory Superannuation Guarantee (SG), which represents 9.5% of your salary. Wage victims are considered a “conceded” contribution. Contributions granted include: workers can renegotiate an agreement on victims of wages at any time, subject to the terms of an employment contract or an employment contract.
If the employee is employed under a contract, you and your employee can renegotiate the salary amounts that must be sacrificed before each renewal begins. If you want wage victims, you must consider your employer`s contributions and all other personal contributions (after taxes) for which you wish to claim an income tax deduction to ensure you stay within the reduced tax limits. Wage victim plans in an employee`s super fund are considered deductions. As an employer, you can only withdraw money if: it is advisable that you and your employee be clear and agree on all the terms of a pay sacrifice agreement. You should consult the Fair Work CommissionExternal Link before proceeding. If you want to add more to your super per pay victim, simply download the form below and fill it out with your employer. Setting up salary victims to save more for your retirement may seem like a no-brainer. Don`t just consider your debt before adding your super, but weigh yourself: For example, the employer adapts the agreement to ensure that the sacrificed wages are now included in the employee`s OTE base. You can talk to a tax advisor about the impact on your business.
Contributions for salary victims you pay for an employee must be included in the annual summary of payments as employer super-contributions to be reported. Before you commit to sacrificing your salary, you can see how this might work for you using our contribution calculator. If the salary is super sacrificed, the contributions will be kept in the fund. The employee can only access it if he meets a condition of release, for example. B reaching the age of preservation. The plan must be forward-looking. In other words, the agreement must apply to your employee`s future income. It cannot be salaries, salaries or rights they have already earned.
This means that an effective agreement on pay victims cannot include annual or long service leave accumulated by your employee prior to the conclusion of the agreement. Sharon earns $2,000 a week and has an effective salary sacrifice contract with her employer to sacrifice $250 a week to her supernuation fund.