9.5% super not calculating correctly
I have a client who have a max super amount per fortnight of $166.06 (which is 76 hours x $23 = $1,748)
I have that set up as per the attached and that is working fine
However, when they work under the 76 hours, it's calculating incorrect ($8.52 out for one employee and $6.12 for the other) - as shown in the attached
What have i missed in the set up? They are fortnightly staff
Thanks,
Superannuation is calculated on a calendar month by month basis using the payment date to determine the month. Typically, I would probably go so far as saying ALL the cases, when superannuation is calculating a different amount (i.e. not 95.% of that pay) it is trying to backdate the amount from a previous pay to make it 9.5% for the month.
What I would recommend doing to everyone that is finding that their superannuation is not calculating as they would expect is:
- Go to the Payroll>>Payroll Categories>>Superannuation>>Select the desired category. Take note of the Calculation basis. Select the Exempt button and take note of the categories that are ticked in that window.
- Go to the Card File>>Card Lists>>Select the Employee>>Payroll Details tab>>Pay History (LEFT-hand side) and select to show the pay history for the calendar month. Add up all the wage categories listed (excluding the ones have been marked exempt for that superannuation category).
If you take superannuation calculation percentage (i.e. 9.5%) of the value of that total wage does it give you the same value of the superannuation listed? If not, the next pay recorded for that employee will include an adjustment to make it 9.5% for the calendar month.
In your case, I would have it a guess that the difference is $8.52 for that employee, hence when you are doing that $0.00 pay you have an $8.52 for that superannuation category. This is likely to come about by that limit you have on the superannuation category. Limits are set on a per pay basis, whereas the calculation basis is based on a monthly basis.
So what is occurring: say the employee was paid $2,000 in their first pay, the superannuation calculated is $190 (2,000 x 9.5%), however, the limit that you have set is indicating that only $163.06 should be paid. This does mean that $26.94 (190 - 163.06) is not being calculated and thus when an employee is being paid less one week in that calendar month, say $500, the superannuation value is going to be $74.44, which is a combination of the 47.50 (500 x 9.5%) and the residual amount still to be paid of the month ($26.94). This is an example to give you an idea on how the system will operate with limits set.
Personally, I would be looking at removing that limit so that when the employee is paid extra extra superannuation is being calculated and you are not carrying that across to another pay. If the calculation basis and threshold values are set correctly typically a limit is not required in most cases.
- Go to the Payroll>>Payroll Categories>>Superannuation>>Select the desired category. Take note of the Calculation basis. Select the Exempt button and take note of the categories that are ticked in that window.
