From 1 January 2020, salary sacrifice amounts can no longer be used to reduce your SGC obligations

Payments made on or after 1 January 2020 will be assisted by Xero to process this correctly by flagging employees where SGC has been nominated to be reduced. Employee names will be highlighted and whether they triggered the validation through salary sacrificed super, and/or a deduction. The alert will remind you how to update these settings to comply with the ATO change, and you can find information about how to do this  here.

If you’ve already posted a pay run with a payment date on or after 1 January 2020, you may need to review this to make sure the calculations are correct. An easy way to do this is to revert and repost the pay run, or post an unscheduled pay run to make any amendments.

Xero has created a step-by-step guide on what to do. Click here to find out all you need to know about how to adjust Xero Payroll. 

For more information about the changes, click here to head to the ATO website