Employee Changing Super Funds

[Denise102]

I have an employee who has changed Super Funds mid month. I am using the lastest version of Account Right.
I have updated their card file to the new Super Fund in the Payroll Categories section.
When I process payroll, it is automatically putting an amount in under the Super tab as if I haven't paid the employee any Super for the month.  I have manually adjusted this to reflect the 10% of their weekly wage.
Have I done something wrong as this has happened for 2 payroll weeks in a row, or will MYOB use the correct amount for the next calendar month?

[Steven_M · Accepted solution]

Hi @Denise102 

Superannuation categories and superannuation funds are actually two different things. Superannuation categories are the payroll categories used on a payroll transaction to calculate and store the amounts of superannuation accrued for an employee. Superannuation funds are used to pay the amounts accrued by superannuation categories to that superannuation funds. Superannuation categories can be seen and reviewed through Payroll>>Payroll Categories>>Superannuation. Superannuation funds are available via Lists>>Superannuation.

Now, in some cases, users set up superannuation categories as superannuation fund names. So when the employee has a superannuation fund they are also linked to the superannuation category of that name. While this is fine it can lead to some complications if an employee updates to a different superannuation fund as this changes their superannuation category.

As superannuation is calculated on monthly basis per superannuation category, updating that superannuation category mid-month would cause the system to attempt to backdate the superannuation amount for the full calendar month's worth of data (no superannuation amount has been calculated for that individual superannuation category). As a result, you do typically end up with an inflated value in the superannuation of the next pay due to the fact it's using the full gross wages for the month to calculate that superannuation.

The ideal solution to this would be to move to one superannuation category i.e. Superannuation Guarantee and linking all the employees to it. This way if the employees change superannuation fund there is no impact to the superannuation category. Note: You would move the employees to this new process after the pays for a month have been processed.

The other option if you are using a superannuation fund-superannuation category set up would be to manually update the superannuation for all pays in that calendar month to only include the amounts on that pay (or since the change to their superannuation category).

[Denise102]

Hi Steven,

Thanks for the reply, that makes sense now