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HCL's avatar
HCL
Experienced User
4 years ago
Solved

Kiwisaver included in Salary Remuneration

Hi   I just want to clarify an employee who has an hourly rate of $38 p/hr but in their IEA it is written that kiwisaver is included in their remuneration package.   Can you please confirm how to...
  • Steven_M's avatar
    4 years ago

    Hi HCL 


    When processing a pay within MYOB Payroll, you can select the Super button and it will give you more of an insight into what is occurring with the superannuation for that particular pay. 

     

    In your case, the following window would have likely been shown if you selected that option:

     

     

    To go into specifics, the $127.38 on the Payroll Summary Report is the Gross multiplied by the employee contribution rate (Employer contribution (funded by the employer) and Employer contribution (funded by salary sacrifice)). Or in other words, 2123.16 x 6% = 127.38.

     

    In terms of the 2.83%, the employer contribution (funded by salary sacrifice) entered value includes an additional component that is not included when the pay is processed. From memory, it's the ACC Earner Levy value that is removed from that percentage to give you a slightly lower percentage when processing the pay. 

    Generally speaking, the employer contribution (funded by salary sacrifice) option is not used within the softwre. Typically, if you are needing the Kiwisaver included in the salary you would enter the rate excluding that superannuation amount. This way you have the rate and super is calculated on top of that.