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Anita_DEN's avatar
Anita_DEN
Experienced Cover User
4 years ago
Solved

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 t...
superannuation
  • Steven_M's avatar
    Steven_M
    4 years ago

    Hi Anita_DEN 

     

    Superannuation is calculated on a month by month basis. So that particular pay is looking at the full calendar month's worth of pay to determine that superannuation.

     

    The calculation for that pay is as follows:

     

    Base Hourly pay history amount + this pay's base hourly amount:

    $5536.44 + $2768.22 = $8304.66

    This gives you the month's gross wages

     

    Gross wages for the month x superannuation rate percentage (9.5%)

    $8304.66 x 0.095 = $788.94

    This gives you the required superannuation amount for the month (or the target if you will)

     

    Required superannuation amount for the month minus what has been processed already

    $788.94 -$664.23 = $124.71 

    $124.71 is the amount that is shown on that payroll transaction for the superannuation.

     

    $664.23 being the amount of super from the pay history- originally you listed it as $387.73 then you have done an adjustment of $276.50 to give you $664.23.)

     

    In summary, AccountRight does appear to be calculating the superannuation as intended. The reason why it is not 9.5% of that particular pay is that it will calculate based on the full calendar month. As you have had that category exempt for the past few pays these ae being factored into the equation for the month.

     

    Going forward you'll find that superannuation is calculated as intended as you haven't had past pays impacting the calculation and it would be a fresh calendar month.

Steven_M's avatar
Steven_M
Former Staff

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.
Anita_DEN's avatar
Anita_DEN
Experienced Cover User
4 years ago

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's avatar
    Steven_M
    Former Staff
    4 years ago

    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.

    • Anita_DEN's avatar
      Anita_DEN
      Experienced Cover User
      4 years ago

      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.

      • Steven_M's avatar
        Steven_M
        Former Staff
        4 years ago

        Hi Anita_DEN 

         

        Superannuation is calculated on a month by month basis. So that particular pay is looking at the full calendar month's worth of pay to determine that superannuation.

         

        The calculation for that pay is as follows:

         

        Base Hourly pay history amount + this pay's base hourly amount:

        $5536.44 + $2768.22 = $8304.66

        This gives you the month's gross wages

         

        Gross wages for the month x superannuation rate percentage (9.5%)

        $8304.66 x 0.095 = $788.94

        This gives you the required superannuation amount for the month (or the target if you will)

         

        Required superannuation amount for the month minus what has been processed already

        $788.94 -$664.23 = $124.71 

        $124.71 is the amount that is shown on that payroll transaction for the superannuation.

         

        $664.23 being the amount of super from the pay history- originally you listed it as $387.73 then you have done an adjustment of $276.50 to give you $664.23.)

         

        In summary, AccountRight does appear to be calculating the superannuation as intended. The reason why it is not 9.5% of that particular pay is that it will calculate based on the full calendar month. As you have had that category exempt for the past few pays these ae being factored into the equation for the month.

         

        Going forward you'll find that superannuation is calculated as intended as you haven't had past pays impacting the calculation and it would be a fresh calendar month.