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Entering Superannuation As Part of Payroll

COUNTRY: Australia

How to enter Superannuation Guarantee Contribution Payments

When you enter a payroll transaction that contains an SGC (Superannuation Guarantee Contribution) superannuation amount, Saasu puts the money owed to the employee's super company against a Liability: Employee SGC Super Payable account. We do this because the employer now owes the employee this SGC super (in the form of a liability) to the employee's nominated super company.

At the same time, Saasu puts the same amount of money against the Expense: Employee SGC Super account. We do this because the employer has incurred an expense (despite not having paid for it yet).

All Australian business should now be SuperStream compliant. The Superannuation Payments report and Superstream setup in Saasu makes it easy to comply with these requirements. You can find out more on setting up superannuation funds, employee setup and the Superannuation Payments report in this help note.

SGC Calculations

The SGC percentage updates automatically in Saasu, to comply with changes in Australian legislation, as long as you use the inbuilt Pay Item.

Thresholds and Limits

Currently Saasu doesn't support threshold calculations (upper or lower) for various types of pay items that relate to pensions, superannuation, and other benefits.

If you have thresholds or limits like this, you can monitor these manually via a spreadsheet. Alternatively, you can add them in as the thresholds are met (instead of removing them later date if the thresholds aren't met). There are several methods depending on the rules and requirements for your specific zone. We may not cover them all in the following examples.

There are several ways to handle thresholds and limits depending on your preference and procedures. Consult your accounting adviser if you aren't sure which method is best for your particular situation.

NOTE: To reverse a pay item amount, you add the pay item but include the amount as a negative number.

Here are some candidate methods for handling thresholds and limits:

  1. Remove the pay item from Pays until the final pay for the threshold calculation period.
  2. Reverse the amount in the final pay for the threshold calculation period where the threshold isn't met.
  3. Reverse the amount in the first pay of the next threshold calculation period that relates to the accrual for the previous threshold calculation period where the threshold wasn't met.
  4. Add an adjusting pay by creating a pay for that employee with just that one pay item reversing the amount. Remove all the $0 or unused pay items before saving the transaction.
  5. Do your adjustments in bulk at the end of each quarter or year. (This may not be possible depending on the laws and regulations that pertain to the threshold or limits). You would need to do this using an adjusting pay or within a normal pay as a special pay item added in.