Should you post a monthly accrual journal for superannuation on a monthly basis if you pay your fund

Liza Oates

In my company I post monthly accruals for Annual Leave and Long Service Leave.  The accountant has advised monthly superannuation accruals should be posted as well.
Does anyone do this? 
Do I need to set up new general ledger codes?

Thank you. 

Zappy

If you set up the super on the employee card the liability is recorded when you process the payroll. Does your accountant know anything about Reckon? This is a very basic function. Thanks for your question.

Kris_Williams

In systems where it does not automatically get entered I would enter a bill or a journal quarterly, depends on your own requirements

Liza Oates

Thank you Kevin - I have the payments set up automatically on the payment card.

Liza Oates

Thank you Kris - When the super is payable I just write a cheque to Australian Super but do not enter an invoice.  I am trying to understand why we would need to do an additional journal as the Super is accruing on the balance sheet and this agrees to what is payable. 

Liza Oates

Can anyone explain why I would need to do an additional long term liability journal when this is cleared quarterly?

John Graetz

Liza.  When you run payroll. the SGC is automatically charged to an expense account with the offsetting amount sitting in the Payroll Liabilities account (or whatever other Liability account you might use).  Are you not doing this?  When you pay your SGC the amount comes out of your Payroll Liability account.  Tell your Accountant that your superannuation is expensed each pay run which means that there is absolutely no call to accrue anything else.  As suggested by Kevin above, this is a basic payroll function and it is apparent that your Accountant has no idea as to how Reckon works.  Point him to the Superannuation Expense account and he will quickly get the picture.
John L G

Zappy

No I said the employee card or record. If you do this properly, you can use the Pay liabilities function to ensure you are recording the payment correctly. 

Kris_Williams

If your payroll system is part of your accounting system that is correct, but for some people there is a separate accounting system to their payroll and the liabilities are not transferred

Zappy

John thanks for your response. I think the Accountant needs to step up here. You know my sister is an Accountant in Brisbane. She doesn't like Reckon at all so she always comes to me when she has a problem. I think the Accountanat should be partnering with an Accredited Partner in this situation. 

Liza Oates

Thank you for your response.  I will go back to the Accountant and seek further guidance as to why this is necessary.