Forum Discussion

activemobility's avatar
activemobility
Trusted Cover User
3 years ago

Super on leave loading

I have noticed a SG 10.5% Leave Loading category appear.

I got a payroll person to check my payroll for STP2, so not sure if they have done this, or MYOB have added??

 

Anyway, I noticed that it was adding 10.5% super for leave loading, on top of the 10.5% gross wages.

Leave loading already included in gross wages.

I have gone and changed to gross wages instead of leave loading.

However, should we be showing leaving loading on annual leave as a separate item on payslip? and if so how do we change SG 10.5% on gross wages less the leave loading??

  • Tracey_H's avatar
    Tracey_H
    Former Staff
    3 years ago

    Hi activemobility 

     

    Thanks for your post. Generally speaking, leave loading is a separate payroll category so that it is shown separately on payslips. However, if you're not sure if it needs to be shown separately I'd recommend checking the Fairwork website. This Help Article, Leave loading, has detailed information on setting up and paying leave loading.

     

    If super is accrued on leave loading you would need to make sure the super guarantee payroll category Calculation Basis is set to % of Gross wages and the leave loading payroll category is not selected as Exempt.

     

    If a new superannuation payroll category has been created can you send a screenshot so that I can assist further.

     

    Let me know how you go.

     

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

    • activemobility's avatar
      activemobility
      Trusted Cover User
      3 years ago

       

      Something is not right.

      The SG is set up for 10.5% of gross wages. Correct.

       

      The SG 10.5% on Leave loading, was set up to 10.5% of Leave Loading.  This added 10.5% on top of SG 10.5%. So we paid too much. Because leave loading is also included in gross wages.

       

      I changed SG LL to minimum required amount, but then that showed double amount when doing pays.

       

      If we are to show 10.5% super on leave loading as a separate item on payslip, What do we set the SG 10.5% to ?  eg to exclude the leave loading component. 

      Does this make sense now?

       

      • Tracey_H's avatar
        Tracey_H
        Former Staff
        3 years ago

        Hi activemobility 

         

        Thanks for those screenshots. To prevent super from accruing on leave loading twice you would need to exempt it from calculations in the Superannuation G 10.5% payroll category by clicking on Exempt and ticking the leave loading payroll category.

         

        It might also be worth checking if it needs to be shown separately on payslips. I can't advise on what is correct for your business but generally leave loading is separate and the super amount is included in the SGC accrual. Just thinking it would make it a lot easier if you only need to use one SGC payroll category.

         

        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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