Report RESC at end of Year

Note: This page is for RESC that is not Salary Sacrifice.
For Salary Sacrifice amounts that are RESC, see Salary Sacrifice - Superannuation

If unsure about the difference, see the ATO's Guidelines here

Basically if an employee salary sacrifices into a complying super fund, this is Salary Sacrifice and RESC. If however an employer pays additional super over and above the required 10.5% in most cases this is RESC but is not Salary Sacrifice.




3.3.3 Reportable fringe benefit amount /Reportable employer superannuation contributions

Where an employee receives RFBA or RESC amounts these may be reported through STP.

Note: Reportable Fringe Benefits Amounts arising in an FBT year (1 April until 31 March) must be reported entirely within the financial year ending on the following 30 June (for example, for 1 July 2017 until 30 June 2018 Financial year include RFBA amounts from 1 April 2017 to 31 March 2018). RFBA from 1 April to 30 June are reported in the following financial year.

The rules for reporting RFBA/RESC are:

1. An employer may provide YTD RFBA and RESC through a pay event (if the information is available in payroll) throughout the financial year.

2. An employer may provide YTD RFBA and RESC through an update event throughout the financial year.

3. If reported during the year via a payroll or an update event the amounts should continue to be reported for each following pay event, even if the YTD amounts remain the same.

4. Alternatively, the employer may report these amounts via an update event as a part of the finalisation process at the end of the financial year.

5. If the employer cannot (or makes a choice not to) provide RFBA or RESC via STP, then they must provide this information on a payment summary to their employees and provide a payment summary annual report to the ATO. This payment summary must not include amounts reported through STP.

See also Reportable employer super contributions – for employers

How to report RESC in STP Creator

Where additional employer superannuation contributions that are an RESC amount are paid through the Payroll module in MYOB®, we recommend reporting these as each pay is processed using the method outlined here Report RESC with each Pay.

Where additional employer superannuation contributions amounts are not recorded via the Payroll module in MYOB® we recommend these be reported at Year End as outlined below, similar to how it was done when preparing Payment Summaries in the past.

To ensure the RESC field appears in the Mapping drop down list and on the Final STP Data screen, you need to first select the relevant STP Field here - use Field ID 77. If reporting RESC at Year end, and if a Payroll Category was used in MYOB®, do not map the Payroll Category to RESC, map it to Not Reportable, otherwise you will double up.

At the end of each payroll year, you need to add a Final Indicator = TRUE for each Payee to notify the ATO that this is the final report for this payee and their Payment Summary (or Income Statement) can now be set to 'Tax Ready'.

We recommend when doing the End of Year Finalisation via STP, work out the total RESC amount (say it is $2600) and complete the RESC field on the employee's card as follows:

If you are using the alternative method (see Handle Salary Sacrifice) do not add the RESC on the Payee screen (above). Any amount shown on the Payee screen above will be added to the Payroll Category amounts mapped to RESC.

When preparing the Assemble Final STP Report Data, the amount shown here (plus any Payroll Category mapped to RESC) will be reported in the RESC field. Check that it is correctly displayed (as per image below) and add a Final Indicator for this payee.

After you have submitted the Final Indicator with the above RESC amount, be sure to set this amount back to zero on the Payee Screen before your first STP report in the new payroll year.

If not using MYOB®

Use the same procedure as outlined above for MYOB® users. Alternatively, simply select the relevant STP Fields here. On the Assemble Income Statement Data (YTD) screen, manually add or import YTD data indicating the YTD amount for each Payee against each STP Field.

After you have submitted the Final Indicator with the above RESC amount, be sure to set this amount back to zero on the Payee Screen before your first STP in the new payroll year.