The most common calculation for Superannuation is a Percentage, meaning that the selected components are multiplied by the nominated percentage. This is the calculation this article will cover. You add a new Employer Contribution when different conditions apply to different groups of employees or when there is a change, e.g. an increase in the SGL rate. You can use the same Employer contribution for multiple years if there are no changes.
There are three steps to setting and using an Employer Contribution.
Create the Employer Contribution
Attach the Contribution to a Fund
Attach the Contribution to the Employee
Once the Contribution has been created, review the Superannuation File and General Ledger Batch to see if the Contribution needs to be included.
SGL Contribution
Go to Payroll, Maintenance, Superannuation, Employer Contribution.
Click Add to create an Employer Contribution. Alternatively, you can copy an existing Contribution, using right-click and Copy.
Enter a Code and Description.
Select Percentage as the Employer Contribution Type.
Enter the Percentage Deduction to use as the calculation basis. If this is your compulsory SGL contribution, this will be per the ATO.
The SGL Percentage is the ATO's nominated percentage.
Tick Apply SGL Exceptions if you want to apply the SGL criteria, e.g. Maximum Contribution Cap.
Complete any other required fields in Calculation Information.
Under STP Phase 1 & 2, tick Include in STP Reporting and select Super Guarantee (SGL).
Select the Calculation Parameters tab and select the components to use as the basis of your super calculation.
Pay Components - select the required components.
Leave Reason - use Select to include existing Leave Reasons in the calculation. The button is available if Other Leave is selected in Pay Components. Super will calculate when Other Leave is used in a transaction with one of the nominated Leave Reasons.
Addition & Deduction Codes - either:
Nominate specific codes - use Select to select the codes and ensure Included is ticked
Include all and specify exclusions - tick the All box (e.g. All Additions Before Tax), then use Select to select the exclusions and ensure Included is unticked.
User Defined Leave - Select to include User Defined Leave in the calculation. The button is available if User Defined Leave is selected in Pay Components.
Click OK to save.
Attach to a Fund
Go to Payroll, Maintenance, Superannuation, Funds.
Edit the required Fund.
On the Employer Contributions tab, click Select and include the new Contribution created above.
Click OK to save. Repeat for any other Funds that require the contribution.
Attach to the Employee
Go to Payroll, Maintenance, Employees, Employees.
Edit the employee and select Superannuation Details.
Under Superannuation Contributions, click Add and select the new Employer Contribution created above.
Apply SGL will be automatically ticked if it was ticked in the Employer Contribution.
Tick Primary Contribution if the Employer Contribution is the employee's SGL contribution.
Use the Allocations to allocate a portion of the Contribution to the fund. To allocate all of the Contribution to the fund, enter 100.
Click OK to save the Contribution.
If required, amend any other employer contributions.
OK to save the employee.
Once you have included an Employer Contribution in a transaction, you can't delete it from an employee in the Financial Year. Instead, untick Primary Contribution and remove or enter 0 in Allocation.