Forum Discussion

Anita_DEN's avatar
Anita_DEN
Experienced Cover User
5 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 t...
superannuation
  • Steven_M's avatar
    Steven_M
    5 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.

Anita_DEN's avatar
Anita_DEN
Experienced Cover User

Hi Steven,

 

In response to your email, I have now definitely ticked Salary Packaging as exempt from superannuation. I have then entered a dummy payroll for the example employee - see document attached with screen shot of that payroll entry. It is still not correct. It should be $262.96 superannuation guarantee on $2,768.22 gross payment. Instead, it calculates $124.71 superannuation guarantee on only $1,312.74, which doesn't match any figure in the pay, even when I subtract Salary Packaging and Salary Sacrifice, the superannuation falls short. I don't know what it calculates anymore.

I had not made any changs to the setup, and didn't encounter this issue before the update in May.

I just entered another employee's pay for good measure, and find that it pays superannuation on an amount which is (gross payment - 2x Salary Packaging) - very strange indeed. I think the same is the case for the example I've attached. I hope that helps to fix the problem.

 

In summary: AccountRight calculates superannuation on the gross payment reduced by twice the Salary Packaging, while Salary Packaging is ticked as exempt from superannuation.

Steven_M's avatar
Steven_M
Former Staff
5 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.

  • Anita_DEN's avatar
    Anita_DEN
    Experienced Cover User
    5 years ago

    Thanks Steven, that makes sense. Of course it calculates it on a monthly basis, incorporating the $450 threshold, and because we paid the extra superannuation missed in May in this month, it's reduced accordingly. So I expect it to be correct in July.

     

    I'm still unsure how the change came about in May, with neither the AL loading nor the Salary Packaging exempt, as the setup had been correct before, and I didn't go in and make changes.

     

    We'll keep an eye on it!

     

     

Looking for something else?

Search the Community Forum for answers or find your topic and get the conversation started!

Community home

Dig into MYOB Academy for free courses, learning paths and live events to help build your business with MYOB.