To ensure correct calculations, check that all items are correctly setup and being used in the correct manner.
1. Super Items
- The correct super type is selected:
i. SA for the 9% Super Guarantee;
ii. CA for approved collective agreement amounts;
iii. EA for Employer Additional amounts (reports to RESC);
iv. SS for Super Salary Sacrifice (reports to RESC);
v. MV for additional super contributions made by the employee from after-tax pay (member voluntary);
- Tax Tracking Type is set to None;
- Taxes have no ticks;
- Not based on Quantity;
- Paid on Gross Pay;
- Is not an annual limit; vi All relevant Income items are included for calculating Super.
- Deductions can be pre-tax, post-tax or part of a salary package (non-super salary sacrifice). Users should check with their accountant or the ATO for direction into which category their deduction falls:
- Pre-tax deductions require a Tax Tracking Type of Gross Payments and Taxes checked. These settings will reduce earnings for calculation of Super and PAYG;
- Post-Tax deductions require a Tax Tracking Type of Deductions and Taxes unchecked. These settings will not reduce earnings for calculation of Super and PAYG;
- Salary Packaging will require special treatment to reduce PAYG paid but have Super calculated on normal earnings. Click here for details.
- Allowances and Additions can be taxable or tax-free. Users should check with their accountant or the ATO for direction into which category their allowance or addition falls:
- Tax-free allowances and additions require a Tax Tracking Type of Allowance and Taxes unchecked. These settings will not impact on earnings for calculation of Super and PAYG;
- Taxable allowances and additions require a Tax Tracking Type of Gross Payments and Taxes. These settings will increase earnings for calculation of PAYG. If Super is to be paid on the Allowance or addition, that item must be ticked for inclusion in the Super payroll item setup.
Where your setup information is not correct you will need to correct it. Then you will need to:
- delete these items from the employee’s Payroll and Compensation Information, and reinput them;
- open the effected pays, delete the item and reinput it.
Your super should calculate correctly.