Payroll: Allow superannuation under threshold

[GBAStaff]

For those that want to pay their staff super regardless of the monthly earning or who pay above the $450 in the month but not the first week of pay there should be an option to calculate the super on all payments not only on payments of $450 or more in a calendar month.

"Super Payments on amounts below $450

[ronatbas]

In AR this option is already there - you just need to get rid of the $450 in the threshold screen of the Super Information screen. I'm not certain but it is most likely in Essentials as well

[Liam_M]

Thanks for your suggestion @GBAStaff  Anyone else who would like to the ability to accrue super regardless of whether or not the employee earns over the $450 threshold, please cast your vote here.

Please note, that if an employee earns less than the $450 threshold then they aren't technically eligible for the superannuation guarantee. The ATO requires you to report certain, non-compulsory amounts on the employee's payment summary. I strongly recommend that you speak to your accountant or the ATO to clarify reporting requirements, if you choose to accrue super for employees who earn under the threshold.

Also, please note that Essentials does correctly accrue superannuation for employee's who earn less than $450 in their first pay, but end up receiving more than $450 by the end of the month. Essentials exempts all pays from super until the $450 threshold is reached for the month. On the pay where the $450 threshold a superannuation amount equal to the amount for this pay, and all previous pays for the month is accrued (even if the single pay itself is less than $450).

[GBAStaff]

We are an accountant and our clients would like to see this option included. We are aware that it automatically increases the superannuation on the payslip once the $450 threshold is reached however they would like the option to turn this off and have it accrue regardless.

[Steven_M]

HI @GBAStaff 

Thanks for your additional comments. I have shared them with the team.

I would encourage clients that you would like to see a option for the threshold to be turned off and on if required to vote for this idea using the + vote button and comment if required,

[seachange]

I don't think this is a smart idea. Super legislation is very strict and if you overpay super, there is precedence of heavy fines for businesses that do so.

It's great that essesntials can handle the amounts above and below the $450 in the month.

[Steven_M]

Hi @seachange 

Thank you for your comments and feedback. I have shared your thoughts with the team.

[Dogzbreath]

This is a common circumstance for people working as aged or disability support carers who often work for multiple employers. We pay super on every dollar earned and have to manually adjust this each pay period. A thought - why does our government insist that people earning less, be less entitled to super?

[Cath2464]

Regarding superannuation guarantee monthly income minimum - I deal with the hospitality award for NSW and the threshold is $350 per month.  Is it possible to vary the amount down to $350 from $450 in Essentials?

[Dogzbreath]

I agree strongly with @GBAStaff. Spoke to my accountant and he saw no prob

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@GBAStaff wrote:

For those that want to pay their staff super regardless of the monthly earning or who pay above the $450 in the month but not the first week of pay there should be an option to calculate the super on all payments not only on payments of $450 or more in a calendar month.

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Spoke to my accountant - he saw no problem with paying people the SGC for all normal earnings - after all, it is the employer paying, not the government, and the eligibity criteria are there to ensure people are paid the minimun entitlement, not the other way round. It should be a simple toggle per employee in MYOB that gives the employer the choice. I have to change the default calculations in payroll every fortnight, which is a right pain in the petunia.

[kenzie1955]

It would be really helpful as I have a client who wants to pay superannuation to her employees regardless of the threshhold.