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niqueyk1's avatar
niqueyk1
Contributing User
3 years ago

Bonuses/Commissions & Super guarantee

Hello, wondering if anyone can help,

 

Quite a few of our employees are on a fortnightly bonus/commission. This is a payment beyond their base salary- some employees are on the award and for others, their base salary is above award & then we calculate their bonus based on a percentage of income generated.

 

It's occurred to me that the way the payroll category is set up that I pay their bonus in, we are paying super on their bonus amount which is blowing our super liability out a lot. My understanding is that we don't need to pay super on these amounts and I'm wondering if anyone can help me understand how I set the category up so that it doesn't calculate super for it?

 

Thanks in advance :)

  • Tracey_H's avatar
    Tracey_H
    Former Staff
    3 years ago

    Hi niqueyk1 

     

    Thanks for your post. To stop super from calculating on a wage payroll category go to Payroll categories>>Superannuation tab>>open the super category>>click Exempt and tick the category to be excluded from calculations.

     

    You can also check with the ATO to clarify if super is payable as commissions and some bonus payments are considered OTE's for super: List of payments that are ordinary time earnings 

     

    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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