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Jason5173's avatar
Jason5173
4 years ago

Wrong Calculation of Super Expense after SG Rate Increase

Hi there,   We have mannually changed our super guarantee rate from 9.5% to 10% for the first pay in new payroll year, while there is something wrong with AccounRight Version 2021.30 on automatical...
  • Tracey_H's avatar
    Tracey_H
    4 years ago

    Hi Jason5173 

     

    Thanks for your post. Super is calculated on a monthly basis like this: 

    The amount of pay for the month MULTIPLIED by the current super rate MINUS super already calculated for that month.

     

    This means that if you have processed a pay with the payment date in July and super rate at 9.5% then change the rate to 10%, the software adjusts the super calculation for the next pay so that 10% is accrued for the whole month. This will be why your second July pay is calculating at 10.5%, to make up for the 0.5% shortfall in the first week.

     

    You don't need to make any super adjustments going forward as the software has done it for you. You can check by running the Payroll Activity detail report for the month of July and making sure that super is 10% of OTEs.

     

    Please let me know if you need further help.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

Tracey_H's avatar
Tracey_H
Former Staff

Hi Jason5173 

 

Thanks for your post. Super is calculated on a monthly basis like this: 

The amount of pay for the month MULTIPLIED by the current super rate MINUS super already calculated for that month.

 

This means that if you have processed a pay with the payment date in July and super rate at 9.5% then change the rate to 10%, the software adjusts the super calculation for the next pay so that 10% is accrued for the whole month. This will be why your second July pay is calculating at 10.5%, to make up for the 0.5% shortfall in the first week.

 

You don't need to make any super adjustments going forward as the software has done it for you. You can check by running the Payroll Activity detail report for the month of July and making sure that super is 10% of OTEs.

 

Please let me know if you need further help.

 

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

Jason5173's avatar
Jason5173
4 years ago

Hi Tracey,

 

Thanks for your quick response.

 

What actually happened was we processed our 24/6/21-30/6/21 wages on 1/7/21 which was also the payment date. In this case, what SG rate we were supposed to use?

 

Thanks for your support.

 

Cheers

Jason

  • Tracey_H's avatar
    Tracey_H
    Former Staff
    4 years ago

    HI Jason5173 

     

    According to the ATO everything payroll related is reported according to the payment date, not pay period, so that payrun with 1 July payment date is in the 2022 FY and super rate is 10%.

     

    This is from the ATO Newsroom:

     

    The rate you use to calculate super contributions will depend on which quarter you pay your employee. It doesn't matter if the the work is performed in a different quarter.

    This means you'll need to calculate your super contributions at the rate of:

    • 10% on all salary and wages you pay to employees on and after 1 July 2021
    • 9.5% on all salary and wages you paid to employees before 30 June 2021.

    For example, for the fortnightly pay period starting 24 June 2021 and ending 7 July 2021, Sue earns $4,500. She is paid on 8 July 2021. The minimum super guarantee contribution for Sue for the pay period is 10%, so Sue's super for the quarter is:

    $4,500 × 10% = $450

     

    Please let me know if you need further help.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

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