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Anita_DEN's avatar
Anita_DEN
Experienced Cover User
5 years ago

Superannuation calculated wrongly

We just realised that our superannuation guarantee has not been calculated correctly since May, I suspect since we updated to AccountRight 2020.2. It's not about the threshold, though, the issue is t...
superannuation
  • Steven_M's avatar
    Steven_M
    5 years ago

    Hi Anita_DEN 

     

    Superannuation is calculated on a month by month basis. So that particular pay is looking at the full calendar month's worth of pay to determine that superannuation.

     

    The calculation for that pay is as follows:

     

    Base Hourly pay history amount + this pay's base hourly amount:

    $5536.44 + $2768.22 = $8304.66

    This gives you the month's gross wages

     

    Gross wages for the month x superannuation rate percentage (9.5%)

    $8304.66 x 0.095 = $788.94

    This gives you the required superannuation amount for the month (or the target if you will)

     

    Required superannuation amount for the month minus what has been processed already

    $788.94 -$664.23 = $124.71 

    $124.71 is the amount that is shown on that payroll transaction for the superannuation.

     

    $664.23 being the amount of super from the pay history- originally you listed it as $387.73 then you have done an adjustment of $276.50 to give you $664.23.)

     

    In summary, AccountRight does appear to be calculating the superannuation as intended. The reason why it is not 9.5% of that particular pay is that it will calculate based on the full calendar month. As you have had that category exempt for the past few pays these ae being factored into the equation for the month.

     

    Going forward you'll find that superannuation is calculated as intended as you haven't had past pays impacting the calculation and it would be a fresh calendar month.

Anita_DEN's avatar
Anita_DEN
Experienced Cover User

This is not our issue, even though I'm not sure whether we're on the most recent update including the patch - I haven't received an email to instal the patch.

However, our issue is as outlined above, that superannuation is actually calculated on the taxable income, i.e. gross income less Salary Packaging, instead of on the gross income.

Steven_M's avatar
Steven_M
Former Staff
5 years ago

Hi Anita_DEN 

 

The calculation basis of superannuation category determines how that category will calculate.

 

A user can see the calculation basis of a category via Payroll>>Payroll Categories>>Superannuation>>Selecting the desired category>>Calculation basis.  In some cases, that calculation basis will a percentage of Gross Wages. When that calculation basis is used the exempt button will be available. Anything that is ticked in that window will NOT be included in that calculation.

 

For example, say you wanted to the exclude overtime from being included in the superannuation category basis, you would be looking at navigating to the payroll category, selecting Exempt and then ticking that Overtime category. Going forward that category will not be included in the calculation.

  • Anita_DEN's avatar
    Anita_DEN
    Experienced Cover User
    5 years ago

    Thanks Steven, I understand this and it was the first I checked when realising that the calculation is wrong. AccountRight is now excluding Salary Packaging, but it is not selected as exempt. I have not changed anything, but the calculation has changed since May, presumably when we updated to 2020.2.2.

    As far as I can see, this is another, new glitch in the version.

    • Anita_DEN's avatar
      Anita_DEN
      Experienced Cover User
      5 years ago

      I forgot another glitch in the superannuation calculation: It is also not calculated on Personal Leave. It is definitely set up as 9.5% of gross wages, and the exempt categories are only AL loading (as I ticked it again, it had disappeared and therefore paid super on AL Loading since May), travel allowances and JobKeeper topup.

    • Steven_M's avatar
      Steven_M
      Former Staff
      5 years ago

      Hi Anita_DEN 

       

      So we can review the superannuation calculation within AccountRight 2020.2 we would require the following screenshots of the following information:

      • The Superannuation Information window - Payroll>>Payroll Categories>>Superannuation>>Select the superannuation category
      • A list of all categories that are exempt for that superannuation window - Exempt button from the Superannuation Information
      • A current payroll transaction showing the "incorrect" calculation
      • The pay history of that employee for that calendar month - Card file>>Cards lists>>Employee>>Select the relevant employee>>Payroll Details >>Pay History (LEFT hand side)>>Show pay history for.
      • Anita_DEN's avatar
        Anita_DEN
        Experienced Cover User
        5 years ago

        As for some reason, I can't paste the screenshots here, I have attached the documents:

         

        The pay history is hard to read, but looks like this for May for this employee as an example:

        Base hourly: $5,536.44

        Salary Packaging: -$1,455.40

        Salary Sacrifice: $240.00

        PAYG: $1,064.30

        Superannuation Guarantee: $387.70

         

        So it clearly calculates super from base hourly less Salary Packaging. It's never done this before the upgrade.

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