Reportable employer super contributions (RESC)¶

Employers must pay compulsory super, called the super guarantee. Sometimes an employee arranges for extra super to be paid on top of that — for example, through salary sacrifice. That extra amount has a name: reportable employer super contributions, or RESC.

RESC is reported to the ATO and shown on the employee's income statement. This lesson explains what counts as RESC, what does not, and why it matters.

Why this matters¶

RESC often confuses people because it appears on the income statement but is not part of taxable income. It is there for a reason: it is used in several income tests. If you do not understand it, you might think you are being taxed on your super, or you might be surprised when it affects a test that decides an offset or a benefit. Knowing what RESC is clears up both.

What you will learn¶

• What reportable employer super contributions (RESC) are
• What counts as RESC and what does not
• Why RESC is reported and how it is used

Understanding the concept¶

The key idea is influence. The ATO says a contribution is reportable when the employee has the capacity to influence the amount — in other words, the employee had some say in it, or it was extra beyond the compulsory super guarantee.

RESC typically includes:

• Salary sacrifice into super — where the employee agrees to give up part of their before-tax pay so the employer puts it into super.
• Extra contributions the employee negotiated as part of their salary package.
• Pre-tax amounts the employee directs into super, such as choosing to put a bonus into their fund.

RESC does not include the compulsory super guarantee the employer must pay, or extra amounts the employee had no say in — such as an extra contribution set by an industrial award that the employee cannot influence. Those are still super, but they are not reportable as RESC.

Why report it? RESC is not added to your taxable income on its own — it does not increase the tax on your salary. Instead, the ATO uses it in various income tests. These tests add RESC back to your income to check whether you qualify for certain offsets, concessions and obligations. Reporting RESC keeps those tests fair, so that someone sacrificing a lot into super is not treated as having a lower income than someone who took the same money as cash.

RESC is reported through Single Touch Payroll (STP) and appears on the employee's income statement, which they can view through ATO online services.

Example¶

Mia earns a salary and her employer pays the compulsory super guarantee. Mia also sets up salary sacrifice, agreeing to put part of her before-tax pay into super each fortnight. The compulsory super guarantee is not RESC, because Mia cannot change it. The salary sacrifice is RESC, because Mia chose it. At the end of the year, Mia's income statement shows the salary sacrifice amount as reportable employer super contributions. It is not added to her taxable income, but it is used in income tests that check what she can claim.

Common mistakes¶

• Thinking RESC is taxed as extra income — it is not; it is used in income tests instead.
• Treating the compulsory super guarantee as RESC — only extra amounts the employee can influence count.
• Assuming all salary sacrifice looks the same — sacrificing into super is what shows as RESC.
• Ignoring RESC on the income statement — it can affect offsets and benefits you claim.

How this works in myaccountant¶

Key points¶

• RESC is extra employer super an employee can influence, such as salary sacrifice.
• The compulsory super guarantee is not RESC.
• RESC is reported through Single Touch Payroll (STP) and shown on the income statement.
• RESC is not added to taxable income by itself.
• RESC is used in various income tests for offsets, concessions and obligations.
• The test is whether the employee had the capacity to influence the amount.

Learn next¶

• Employer contributions
• Salary sacrifice contributions
• Contribution reporting

General information only — not tax, super or financial advice.