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CSSAUS's avatar
CSSAUS
Experienced Cover User
4 years ago

Base Salary vs Gross wages

With AccountRight Payroll, what is the difference between Base Salary & Gross Wages?

 

Under Payroll Categories, "Base Wages" is listed as a wages payroll category but "Gross Wages" isn't. Both "Base Wages" and "Gross Wages" can be used as a calculation basis for Superannuation Guarantee.

  • Steven_M's avatar
    Steven_M
    4 years ago

    Hi CSSAUS 

     

    Base Salary is a wage payroll category like overtime or holiday pay. Gross Wages would be a collection of payroll categories i.e. base salary, overtime, and holiday pay could be counted as gross wages.

     

    In terms of superannuation category calculations, when you have it set to be Base Salary you would only have the amount calculated on that particular category. So any amounts paid through other payroll categories like overtime or holiday pay would not be included in the calculations. However, if it is set to be Gross wages it could be set to include Base Salary, overtime and/or holiday pay.

     

    If you do have a calculation basis set to be Gross Wages, the Exempt button will be selectable on the Superannuation Information window. Anything that is ticked in here would be exempt from being calculated. For example, say you want to include all wage categories but not include overtime, selecting Gross Wages and then going to the Exempt list to tick overtime would be the way to exclude the overtime amounts from the calculation.

  • Steven_M's avatar
    Steven_M
    Former Staff
    4 years ago

    Hi CSSAUS 

     

    Base Salary is a wage payroll category like overtime or holiday pay. Gross Wages would be a collection of payroll categories i.e. base salary, overtime, and holiday pay could be counted as gross wages.

     

    In terms of superannuation category calculations, when you have it set to be Base Salary you would only have the amount calculated on that particular category. So any amounts paid through other payroll categories like overtime or holiday pay would not be included in the calculations. However, if it is set to be Gross wages it could be set to include Base Salary, overtime and/or holiday pay.

     

    If you do have a calculation basis set to be Gross Wages, the Exempt button will be selectable on the Superannuation Information window. Anything that is ticked in here would be exempt from being calculated. For example, say you want to include all wage categories but not include overtime, selecting Gross Wages and then going to the Exempt list to tick overtime would be the way to exclude the overtime amounts from the calculation.

    • CSSAUS's avatar
      CSSAUS
      Experienced Cover User
      4 years ago

      Thanks for the explanation.

       

      Whereabouts do I define the payroll categories that form part of "Gross Wages"?

       

      Normally I'm calculating SGC on the employee's base salary but there are occasions where a bonus is paid and obviously this needs to be factored into the SGC calculation.

       

      Cheers,

       

      Steve

      • Steven_M's avatar
        Steven_M
        Former Staff
        4 years ago

        Hi CSSAUS 

         

        Gross wages are defined by the categories that are NOT exempt in the Exempt list of the Superannuation categories i.e. Payroll>>Payroll Categories>>Superannuation>>Select the Superannuation category>>Exempt button -- anything that is not ticked in this window would be included in Gross wages.


        So, for your case where you want Base Salary and Bonus amounts to be included you want to go to that Exempt list and ensure that they are NOT ticked in this window.

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