Forum Discussion

Anita_DEN's avatar
Experienced Cover User
4 years ago

Superannuation calculated wrongly

We just realised that our superannuation guarantee has not been calculated correctly since May, I suspect since we updated to AccountRight 2020.2. It's not about the threshold, though, the issue is this:

We are a non-profit organisation which is exempt from FBT for Salary Packaging (Fringe Benefits) up to $15,900/year. Our employees therefore Salary Package, reducing the taxable income. Superannuation still needs to be paid on the gross income, not the taxable income. Since May, AccountRight has calculated superannuation guarantee only on the taxable income, hence we have paid not enough superannuation.

I'm also certain that I had Annual Leave Loading exempt from superannuation guarantee, because it is, but this was no longer set up as exempt since the update either.


Is this going to be addressed? It looks like we will need to calculate and enter superannuation guarantee manually in the meantime, and we also have to calculate the correct amounts and pay the difference.

  • Steven_M's avatar
    4 years ago

    Hi Anita_DEN 


    Superannuation is calculated on a month by month basis. So that particular pay is looking at the full calendar month's worth of pay to determine that superannuation.


    The calculation for that pay is as follows:


    Base Hourly pay history amount + this pay's base hourly amount:

    $5536.44 + $2768.22 = $8304.66

    This gives you the month's gross wages


    Gross wages for the month x superannuation rate percentage (9.5%)

    $8304.66 x 0.095 = $788.94

    This gives you the required superannuation amount for the month (or the target if you will)


    Required superannuation amount for the month minus what has been processed already

    $788.94 -$664.23 = $124.71 

    $124.71 is the amount that is shown on that payroll transaction for the superannuation.


    $664.23 being the amount of super from the pay history- originally you listed it as $387.73 then you have done an adjustment of $276.50 to give you $664.23.)


    In summary, AccountRight does appear to be calculating the superannuation as intended. The reason why it is not 9.5% of that particular pay is that it will calculate based on the full calendar month. As you have had that category exempt for the past few pays these ae being factored into the equation for the month.


    Going forward you'll find that superannuation is calculated as intended as you haven't had past pays impacting the calculation and it would be a fresh calendar month.

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    • Anita_DEN's avatar
      Experienced Cover User

      This is not our issue, even though I'm not sure whether we're on the most recent update including the patch - I haven't received an email to instal the patch.

      However, our issue is as outlined above, that superannuation is actually calculated on the taxable income, i.e. gross income less Salary Packaging, instead of on the gross income.

      • Steven_M's avatar
        Former Staff

        Hi Anita_DEN 


        The calculation basis of superannuation category determines how that category will calculate.


        A user can see the calculation basis of a category via Payroll>>Payroll Categories>>Superannuation>>Selecting the desired category>>Calculation basis.  In some cases, that calculation basis will a percentage of Gross Wages. When that calculation basis is used the exempt button will be available. Anything that is ticked in that window will NOT be included in that calculation.


        For example, say you wanted to the exclude overtime from being included in the superannuation category basis, you would be looking at navigating to the payroll category, selecting Exempt and then ticking that Overtime category. Going forward that category will not be included in the calculation.