The checkbox, Employer Contribution (STP), is in the Addition / Deduction record. This feature enables the correct reporting of employer super liability values in STP Reporting for employees on total remuneration packages.
When a Deduction Before Tax, which has the Employer Contribution (STP) option selected, is used as the method of processing employer superannuation contribution values for these employees, values processed for the Deduction are reported as Super Liability in STP Reporting Events.
As the Employer Contribution is attached to the employee as a deduction, you won't be able to tick Apply SGL. You will need to monitor the employee's super contributions and manually update to apply the SGL Parameters, e.g. stop the contribution when they have reached the maximum annual contribution.
Note: This method is only applicable to employees on total remuneration packages (e.g. base salary plus employer contributions and any other included benefits). For other employees, for whom employer super contributions are not considered as part of their total remuneration, the correct approach for processing employer superannuation contributions is to use an Employer Contribution rather than a Deduction Before Tax.
To use a Deduction before Tax as an employee's Employer Contribution, you need to:
Create a Deduction before Tax.
Attach the Deduction to the Superannuation Fund.
Attach the Deduction to the employee.
Step 1 - Create the Deduction before Tax
Note: As part of the Payday Super changes, Qualifying Earnings replaces Ordinary Time Earnings. If you have changed the tax year to 2026/2027, Qualifying Earnings (QE) will display on the STP Reporting tab. If you are still in the 2025/2026 tax year, Ordinary Time Earnings (OTE) will display.
Go to Payroll, Maintenance, General, Additions and Deductions.
Click Add.
Enter a Code, Description and Shortcut Key.
Select Deduction Before Tax as Category.
In Type, select Percent.
Select the Hours Type that superannuation will be based on.
If you include Overtime, select Overtime Type.
If you include Other Leave, select Other Leave Reasons.
If you include User Defined Leave, select User Defined Leave.
If you don't include the component in the Hours Type the corresponding field will be greyed out.
Tick Process Deduction Calculation to include any addition or deduction that has Include in Deduction Calculation ticked.
Tick Employer Contribution (STP).
Click on the STP Reporting tab.
Leave STP Phase 1 as the default.
In STP Phase 2, Super Entitlement will be selected as Reporting Group and L (Super Liability (SG)) as Reporting Subgroup. This selection is the default when Employer Contribution (STP) is ticked and cannot be changed.
If applicable tick Ordinary Time Earnings (OTE) or Qualifying Earnings (QE).
Step 2 - Attach the Deductions to the Superannuation Fund
Go to Payroll, Maintenance, Superannuation, Fund.
Edit the fund.
Select the Employee Contributions tab.
Click Select.
Highlight the Deduction and click OK.
You will receive a warning that the Deductions were added as Employer Contributions. The Deductions will appear on the Employer Contribution tab.
Click OK to save the fund.
Step 3 - Attach the Contribution to the Employee
Go to Payroll, Maintenance, Employees, Employees.
Edit the Employee.
Select Superannuation Details.
Click Add in the Superannuation Contributions section.
Select Employee.
Then, select the deduction for Employer Contributions.
Enter the SG percentage as the Value.
OK to save the contribution.
Click OK to save the employee record.