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QES1's avatar
QES1
User
3 years ago
Solved

2021 SGC calculating at the wrong rate?

Hi all,

 

I've just completed my first payroll for the new financial year, and it seems MYOB is calculating the SGC at 10.5% not at the new rate of 10%?

 

I have checked the Superannuation tab under Payroll Categories and all is well?  Is there a reason why it's doing this to me or are there others out there experiencing the same problem?

 

Please advise

 

MG

 

 

  • Tracey_H's avatar
    Tracey_H
    3 years ago

    HI QES1 

     

    What was the payment date for the last June pay? Going by this payrun of pay period July 1-7 with payment on the 8th, I'm assuming the previous payrun was for 24-30 June with payment date 1 July. If so, you've processed two pays for July.

     

    This is from the ATO Newsroom:

     

    The rate you use to calculate super contributions will depend on which quarter you pay your employee. It doesn't matter if the the work is performed in a different quarter.

    This means you'll need to calculate your super contributions at the rate of:

    • 10% on all salary and wages you pay to employees on and after 1 July 2021
    • 9.5% on all salary and wages you paid to employees before 30 June 2021.

    For example, for the fortnightly pay period starting 24 June 2021 and ending 7 July 2021, Sue earns $4,500. She is paid on 8 July 2021. The minimum super guarantee contribution for Sue for the pay period is 10%, so Sue's super for the quarter is:

    $4,500 × 10% = $450

     

    So, if you have processed two pays with payment date in July your software is calculating super correctly. 

    You can check by running the Payroll Activity detail report for the month of July and making sure that super is 10% of OTEs.

     

    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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  • Tracey_H's avatar
    Tracey_H
    Former Staff
    3 years ago

    Hi QES1 

     

    Thanks for your post. Super is calculated on a monthly basis like this: 

    The amount of pay for the month MULTIPLIED by the current super rate MINUS super already calculated for that month.

     

    This means that if you have processed a pay with the payment date in July and super rate at 9.5% then change the rate to 10%, the software adjusts the super calculation for the next pay so that 10% is accrued for the whole month. This will be why your second July pay is calculating at 10.5%, to make up for the 0.5% shortfall in the first week.

     

    You don't need to make any super adjustments going forward as the software has done it for you. You can check by running the Payroll Activity detail report for the month of July and making sure that super is 10% of OTEs.

     

    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.

    • QES1's avatar
      QES1
      User
      3 years ago

      Oh!

       

      But my payroll period was July 1-7 and the payment date was today?

       

      Thanks for the explanation.

       

      MG

      • Tracey_H's avatar
        Tracey_H
        Former Staff
        3 years ago

        HI QES1 

         

        What was the payment date for the last June pay? Going by this payrun of pay period July 1-7 with payment on the 8th, I'm assuming the previous payrun was for 24-30 June with payment date 1 July. If so, you've processed two pays for July.

         

        This is from the ATO Newsroom:

         

        The rate you use to calculate super contributions will depend on which quarter you pay your employee. It doesn't matter if the the work is performed in a different quarter.

        This means you'll need to calculate your super contributions at the rate of:

        • 10% on all salary and wages you pay to employees on and after 1 July 2021
        • 9.5% on all salary and wages you paid to employees before 30 June 2021.

        For example, for the fortnightly pay period starting 24 June 2021 and ending 7 July 2021, Sue earns $4,500. She is paid on 8 July 2021. The minimum super guarantee contribution for Sue for the pay period is 10%, so Sue's super for the quarter is:

        $4,500 × 10% = $450

         

        So, if you have processed two pays with payment date in July your software is calculating super correctly. 

        You can check by running the Payroll Activity detail report for the month of July and making sure that super is 10% of OTEs.

         

        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.