SGC on leave loading

Kali
Kali Member Posts: 341 ✭✭✭
edited May 2020 in Payroll Premier
Hi,

The system isn't calculating SGC on leave loading.

The ATO's SGC checklist states leave loading should form part of OTE when not overtime related: https://www.ato.gov.au/Business/Super-for-employers/How-much-to-pay/Checklist--salary-or-wages-and-o...

Can someone please let me know why Payroll Premier does this and how to fix it?

Comments

  • Tanya Briggs
    Tanya Briggs Accredited Partner Posts: 75 Accredited Partner Accredited Partner
    edited December 2018
    I looks like this issue has been noted and put into a backlog to be resolved.  The workaround is to edit the rate of superannuation when you are preparing the pay so that the super calculated is enough to cover the leave loading too.
  • Kali
    Kali Member Posts: 341 ✭✭✭
    edited April 2020
    Has this been a recent change by the ATO as i seem to remember that once upon a time LL didn't attract SGC?

    It's a pretty significant miss by Reckon and one i hope they fix ASAP as a lot of people would be unaware the system is doing this and therefore opening them up to SGC penalties.
  • Christine Byrne
    Christine Byrne Member Posts: 12
    edited April 2020

    Does anyone know if the SGC on Leave Loading  has been rectified  as yet???
  • Kali
    Kali Member Posts: 341 ✭✭✭
    edited March 2019
    No, it hasn't. I would like to think it's a priority for them but it's obviously not.

    Can we please have an update Reckon?
  • Jill_10105481
    Jill_10105481 Member Posts: 4
    edited June 2019
    I have added SGC to be calculated on leave loading through the payroll item although the leave liability report is not adding the SGC into the totals - any ideas?

  • Kali
    Kali Member Posts: 341 ✭✭✭
    edited June 2019
    Where do you mean when you say 'through the payroll item' - we still manually calculate SGC on leave loading.
  • Jill_10105481
    Jill_10105481 Member Posts: 4
    edited June 2019
    Go to Lists, Payroll Item List, Select Holiday Loading, edit, when you get to the screen Inclusions select all Superannuation Funds, Finish and close. Do the same with your super funds in the Include payments in contribution select Holiday Loading.
  • Kali
    Kali Member Posts: 341 ✭✭✭
    edited June 2019
    Hi Jill,

    Is this for Payroll Premier?
  • Jill_10105481
    Jill_10105481 Member Posts: 4
    edited June 2019
    Yes
  • Kerri_6634298
    Kerri_6634298 Member Posts: 36
    edited August 2019
    Under the Super Guarantee legislation (SGR 2009/2) an annual leave loading is not considered OTE if it relates to a notional loss of opportunity to work overtime. If there are sufficient facts to establish that the purpose of the annual leave ‘loading’ is not for overtime related reasons, it can be considered OTE.
  • Kali
    Kali Member Posts: 341 ✭✭✭
    edited April 2020
    Yes, understand Kerri this has been discussed on a different post. There are a bunch of common Awards where leave loading is paid as an Award condition not due loss of overtime.
  • Kali
    Kali Member Posts: 341 ✭✭✭
    edited April 2020
    Sorry Jill - under 'lists' i don't have 'payroll item list'?


  • Jill_10105481
    Jill_10105481 Member Posts: 4
    edited July 2019
    I have Reckon Accounts Premier: Accountant Edition (with Payroll), you might need administrator rights
  • Kali
    Kali Member Posts: 341 ✭✭✭
    edited April 2020
    Ah.. that explains it.

    I'm using the desktop version they're two different products.

    Thanks anyway.
  • Eddy Neumann Lawyers
    Eddy Neumann Lawyers Member Posts: 1
    edited April 2020
    Hi There

    I have Payroll Premier and was hoping that SGC would now be calculated on Leave Loading.

    Has it? Am I missing something? 

    We too have been doing the SGC manually.

    Thanks :) 
  • Kali
    Kali Member Posts: 341 ✭✭✭
    edited July 2019
    Nope - hasn't been fixed :(
  • Kris_Williams
    Kris_Williams Member Posts: 3,251 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited May 2020
    I was always under the impression that leave loading does not attract SGC, I shall have to check up
  • JPK1969
    JPK1969 Member Posts: 28

    New user of Payroll Premier here. Just doing some report checking heading towards end of financial year and discovered this. I can't believe has been address in Reckon as of yet!

    The industry I work in doesn't have paid overtime, so the leave loading has to be included in the SGC contribution.

    What are the ramifications of this not happening? We have underpaid our staff's super entitlements, so assume we need to back pay this?

  • Kali
    Kali Member Posts: 341 ✭✭✭

    100% agree @JPK1969 - I have brought this up endless amount of times; however, no update ever comes through to fix.

  • Kris_Williams
    Kris_Williams Member Posts: 3,251 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    I have a way of doing this manually and that is to have a super item called additional super. On my wages timesheet I have a formula that calculates super on overtime at the normal rate of pay, not the overtime rate. I then enter this manually into Reckon Hosted payroll