Change in Superannuation fund

[SusieExpTech]

Hi guys,

I have had to update an employees superfund. That account has been closed out with the old fund.

I have accrued super in MYOB to pay that employee. As this fund no longer exists I will need to put it into the new super fund on next super payment.

Our accounts are set up with individual "Linked expense accounts" and also idividual "Linked Payable Accounts" for each employees superfund. It was just set up that when I started working here.

Will I need to create a journal entry to transfer that accrued amount from the "old" super fund Liability account into the "new" super fund Liability for payment? So that when we make the next super payment, it will be paid into the current super fund?

[CloverQ]

Hi @SusieExpTech 

If you use the Pay Superannuation function within AccountRight to make super payments, then first of all please go to Lists > Superannuation Fund, create the new fund with the correct name/USI details. Then go into the employee card > Payroll Details > Superannuation, select the new fund and enter the current membership No. This super fund details will be used when you record the next Pay Superannuation transaction. 

On the other hand, the linked expense/payable accounts within AccountRight are for bookkeeping purposes only, you can use journal entries to transfer the amounts from the old liability account to the new one, then go to Payroll Categories > Superannuation, click into the associated Super category to update its linked expense/liability accounts for future pays, or create a new Super category and move the employee to the new category instead. 

I hope this helps. If you have any further questions please feel free to post again.

[SusieExpTech]

Thanks @CloverQ ! I can see that all the payments due to that employee will go to the new super fund.

My issue now lies with returned monies from the closed fund.

The last payment made into the old super fund has bounced back to us - for that one employee only. I have the cash in our bank account.

BUT - the status of the payment in MYOB "Manage Payments" for the last super transaction has a status of "Processing Payment" from 24/2/2022. It has all employees super payments in that transaction. Will that be rejected? Or will I need to Reverse it and reprocess the super payment - for all employees in that transaction?

Also with the refunded monies - can I put that back into Pay Super somehow, or will I need to make a direct deposit?

[CloverQ]

Hi @SusieExpTech 

Thanks for the update.

Since the payment was bounced back, it does mean that the Pay Superannuation payment was not successful, the status in the Manage Payments window generally takes a few days to update, we did have some problem weeks ago where some users see payments stuck in 'Processing' status while in fact there was problem with the super details.

You do need to reverse the original super payment, correct the fund details then reprocess it. The successfully paid amounts needs to be recorded via Pay Liabilities instead, so they don't get paid via Pay Super again. The bounced amount needs to be recorded as a Pay Superannuation transaction again and resent. Please find details steps on this Help page:

Reversing and reprocessing superannuation payments

[SusieExpTech]

Thank you @CloverQ  - Very helpful!

In relation to: The successfully paid amounts needs to be recorded via Pay Liabilities instead, so they don't get paid via Pay Super again

I have completed this step and has solved my issue! Although the "Pay from Account" that I selected was our Bank Account. This amount is now in my reconciliation window as unmatched. Will I record this against a different account instead? 

Or should I make a journal entry to match it to - if so what would that journal entry be?

[CloverQ]

Hi @SusieExpTech 

Thanks for the update, glad to hear you find the information helpful!

The 'Pay from account' in the Pay Liabilities transaction should be your bank account so no problem there. During bank reconciliation, you should have the original super payment, the reversed super payment to cancel out the original pay, and the re-recorded payments. If you use bank feeds and already matched the original super payment to bank feeds transactions, then please go to Reconcile Accounts, tick the Pay Super reversal and the re-recorded Pay Liabilities + Pay Super transactions, the sum should be $0.