Superannuation calculated wrongly

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Anita_DEN
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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 this:

We are a non-profit organisation which is exempt from FBT for Salary Packaging (Fringe Benefits) up to $15,900/year. Our employees therefore Salary Package, reducing the taxable income. Superannuation still needs to be paid on the gross income, not the taxable income. Since May, AccountRight has calculated superannuation guarantee only on the taxable income, hence we have paid not enough superannuation.

I'm also certain that I had Annual Leave Loading exempt from superannuation guarantee, because it is, but this was no longer set up as exempt since the update either.

 

Is this going to be addressed? It looks like we will need to calculate and enter superannuation guarantee manually in the meantime, and we also have to calculate the correct amounts and pay the difference.

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Steven_M
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Re: Superannuation calculated wrongly

Hi @Anita_DEN 

 

I would recommend checking out Superannuation not calculating correctly in AccountRight 2020.2. This thread outlines what has occurred, what MYOB has done to resolve that situation and how to check your superannuation is calculating correctly with the latest version.

 

Do let us know how you get on and if you require further assistance.

Kind regards,
Steven

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Anita_DEN
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Re: Superannuation calculated wrongly

This is not our issue, even though I'm not sure whether we're on the most recent update including the patch - I haven't received an email to instal the patch.

However, our issue is as outlined above, that superannuation is actually calculated on the taxable income, i.e. gross income less Salary Packaging, instead of on the gross income.

Steven_M
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Re: Superannuation calculated wrongly

Hi @Anita_DEN 

 

The calculation basis of superannuation category determines how that category will calculate.

 

A user can see the calculation basis of a category via Payroll>>Payroll Categories>>Superannuation>>Selecting the desired category>>Calculation basis.  In some cases, that calculation basis will a percentage of Gross Wages. When that calculation basis is used the exempt button will be available. Anything that is ticked in that window will NOT be included in that calculation.

 

For example, say you wanted to the exclude overtime from being included in the superannuation category basis, you would be looking at navigating to the payroll category, selecting Exempt and then ticking that Overtime category. Going forward that category will not be included in the calculation.

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Steven

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Anita_DEN
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Re: Superannuation calculated wrongly

Thanks Steven, I understand this and it was the first I checked when realising that the calculation is wrong. AccountRight is now excluding Salary Packaging, but it is not selected as exempt. I have not changed anything, but the calculation has changed since May, presumably when we updated to 2020.2.2.

As far as I can see, this is another, new glitch in the version.

Anita_DEN
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Re: Superannuation calculated wrongly

I forgot another glitch in the superannuation calculation: It is also not calculated on Personal Leave. It is definitely set up as 9.5% of gross wages, and the exempt categories are only AL loading (as I ticked it again, it had disappeared and therefore paid super on AL Loading since May), travel allowances and JobKeeper topup.

Steven_M
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Re: Superannuation calculated wrongly

Hi @Anita_DEN 

 

So we can review the superannuation calculation within AccountRight 2020.2 we would require the following screenshots of the following information:

  • The Superannuation Information window - Payroll>>Payroll Categories>>Superannuation>>Select the superannuation category
  • A list of all categories that are exempt for that superannuation window - Exempt button from the Superannuation Information
  • A current payroll transaction showing the "incorrect" calculation
  • The pay history of that employee for that calendar month - Card file>>Cards lists>>Employee>>Select the relevant employee>>Payroll Details >>Pay History (LEFT hand side)>>Show pay history for.

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Steven

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Anita_DEN
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Re: Superannuation calculated wrongly

As for some reason, I can't paste the screenshots here, I have attached the documents:

 

The pay history is hard to read, but looks like this for May for this employee as an example:

Base hourly: $5,536.44

Salary Packaging: -$1,455.40

Salary Sacrifice: $240.00

PAYG: $1,064.30

Superannuation Guarantee: $387.70

 

So it clearly calculates super from base hourly less Salary Packaging. It's never done this before the upgrade.

Steven_M
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Re: Superannuation calculated wrongly

Hi @Anita_DEN 

 

Based on the current setup of that superannuation category, the payroll category "Salary Packing" is not exempt from the superannuation category. This does mean that any funds that are processed through that category will be included in the calculation. As a negative value is being processed through that category it will be reducing the overall gross wages in which the superannuation is being calculated on.


Should you wish to have that category included in the calculations, you would be looking at navigating to the relevant superannuation category and ticking the relevant payroll category in the Exempt window.

 

Typically, changes to the exempt payroll category list are user-driven. I personally haven't heard AccountRight 2020.2 unticking or ticking payroll categories as being exempt when that upgrade is being completed.

Kind regards,
Steven

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Anita_DEN
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Re: Superannuation calculated wrongly

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.

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