One or more deduction, superannuation or expense amounts have exceeded their limits

BAFCDHI

I am doing Payroll this morning the following Statement came up with some (not all) of the employees as I processed their wage: "One or more deduction, superannuation or expense amounts have exceeded their limits"

I have tried to look for an answer & something was written about looking at the limits, but I am not understanding were I am looking for these limits

Can someone please help

 

Steven_M

Hi @BAFCDHI 

 

A limit can be seen on a payroll category by Payroll>>Payroll Categories>>Selecting the desired category type>>Select the desired category -- Limit. What a limit does is it limits the category from only calculating a certain amount/basis. For example, you could set a limit to be Equals x amount per pay month, once that category amount has been reached no further values will be calculated.

 

The message you have received indicates that one of the categories has reached its limit and gone over that. A common example would be superannuation. Superannuation is calculated on a per month basis based on the calendar month and there is a threshold of $450 eligible wages per month i.e. you have to reach that threshold in order to have it calculated. Once that threshold has been reached the superannuation is backdated for the month i.e it will look at the full month's wages and use that in the calculation. Now the key thing about payroll category limits is that they apply on a per pay basis, not a per month. So, if you have a limit of say 10% of gross wages it only looks at that pay. As the backdating is done on a per month basis, you trigger the limit on the payroll category and thus the message is generated. To really avoid this situation with superannuation, you would want to set the limit to be No limit. This way if the limit is reached due to that backdating, you would still calculate 10% of superannuation and fulfill your obligations.