Payroll: Superannuation category calculate based on hours (under 18 year old)

[SteveHneedshelp]

Superannuation guarantee Payments in Australia must be paid for all employees (there are some minor exceptions)  that are paid $450 or more in any calender month .

However if the employee is under 18 years of age they must also ( in addition to the $450 requirement) work at least 30 hours per week . This 30 hour requirement is confirmed by both "Australian Tax Office " and " Fairwork Australia"

MYOB does not have the 30 hour requirement in the algorithm , and as a consequence my business which employees a large number of junior casual staff has been paying superannuation unnecessarily . (Over $2,500 in the last two years)

I run MYOB Accountright Plus with the latest updates

MYOB product specialist agrees the 30 hour test is not in their software.

This issue can be worked around by "de checking "  superannuation in the card file and reinstating if the employee works 30 hours , but this is not the type of activity that should need to be done.

I suggest MYOB correct their software

'MYOB AccountRight Plus does not treat Superannuation correctly"

[CJ-Jube]

Wow, i can not believe that this is not a feature of MYOB software, this is not a wide known fact regarding the 30 hours in a week also - i know it has cost us significant dollars in addtional Super contributions that have been made but not been due.  We pay a lot of money to use this software, i expect to have the rules set up so that we dont have to rely on user knowledge and flicking between turing super on and off to ensure compliance for both tax and superannuation.  That is one of the reasons we pay so much for the software!

[Flinders]

Has any movement been made on the above? It is a tiresome process having to check the hours worked each month in order to add back super on employees who are under 18.

[BPChris]

I agree MYOB needs to include this requirement to test super entitlements for under 18yo (over $450 gross in month and over 30hr worked in week).  Otherwise it is left to try remember which staff are under 18yo and manually test and calculate the super for each pay cycle.   If employee reaches the $450 gross threshold later in the month then need to go back and see if they had worked over 30 hours in a previous week within that month to then calculate the super entitlement for that week.  Not very efficient nor fool proof.

[DD68]

It is is a legislative requirement in Australia that Super must be paid to under 18s ONLY if they work over 30 hours in a week AND earn more than $450 in a calendar month.  This is not a new requirement and has been law for many years.  The fact that MYOB is charging a significant fee for a payroll module that does not verify the 30 hour requirement is ridiculous.  All the workarounds (note NOT solutions) have the potential to leave the employer in a situation where they are either overpaying super or excluding some employees from receiving the correct super if they happen to work over 30 hours in a week - leaving the employer open to litigation by FWC.  Can you please address this issue as a matter of urgency!

[JessicaM]

MYOB how is this still an issue? this needs to be fixed ASAP

[H-TS]

First highlighted in 2014, still not an option. It's only just become an issue for me or I would have found and voted for this before. Maybe most employers with under 18 year olds simply use a different software for their payroll. Considering how many ads I'm seeing on facebook for this software that I ALREADY USE, perhaps you could spend that advertising money on fixing the product and bringing it back to its former glory as a wonderful program I used to be happy to recommend to others.

This is right up there with not being able to set an extra tax payment as a percentage of gross wages instead of a dollar amount - that's not flexible enough for casual employees whose wages vary considerably from week to week. That's another thing I have to do manually every week.

[H-TS]

Please fix!!!!!

I zeroed out last week's super manually but this week the employee does need to be paid super. Yeah, fine, except MYOB has added in the calculation that I zeroed out last week so I have to manually remember which pay categories are supposed to have super and which ones don't etc and I'll need to do this every week if I've zeroed out super in any previous week.

With the removal of the $450 threshold, surely MYOB doesn't need to recheck the previous pays in the month anymore???? So glad we only have two U18s at the moment but their hours fluctuate considerably each week. Can't imagine the nightmare payroll is becoming for people with lots of young staff members. 

And the warning message could be more helpful by telling you WHICH employees are under 18. I've worked around that by adding "U18" to their card ID so I can see easily but I shouldn't have to.