an employee that only works on weekends

margaret_9248620
margaret_9248620 Member Posts: 47

an casual employee that only works on weekends and this month they have earned in excess of the 450 threshold isn't calculating super on the amount. Does super apply to them?

Comments

  • Charley
    Charley Member Posts: 538 ✭✭✭

    Yes it applies and as of 1/7/21 there is no 450.00 threshold and 10% super applies to all wage payments

  • margaret_9248620
    margaret_9248620 Member Posts: 47

    Yes but how does reckon able to calculate super on them exceeding the 450 monthly threshold if they on work on Saturdays?

  • Charley
    Charley Member Posts: 538 ✭✭✭

    Margy, if you're paying you employee 100.00 every Saturday then in most months he won't hit the threshold but once every qtr there is a 5 week month which will send him over when super then applies for the whole month. This calculation can actually be done in a spreadsheet, it becomes a bit long but it can be done. Reckon and all accounting packages are effectively a glorified database where this can be done more easily but not by me.

  • Kris_Williams
    Kris_Williams Member Posts: 3,199 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    Reckon Hosted automatically calculates super once the monthly figure reaches 450, but you have to have the tax rate setup to incur super, and the employees details need to have super in them

  • Kris_Williams
    Kris_Williams Member Posts: 3,199 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    The 450 threshold change does not happen till July 2022 according to something I found online

    The government plans to introduce legislation to make this change by July 1, 2022, and it would come into effect at the start of the first financial year after the legislation is passed by Parliament.

  • margaret_9248620
    margaret_9248620 Member Posts: 47

    Yes but on Saturdays they earn double time and super isn't calculated on double time, it is calculated on OTE so how can reckon calculate super for them if they earn over the 450 threshold

  • 113396
    113396 Member Posts: 65 ✭✭

    The law has not been passed yet & comes into effect 01.07.2022

  • 113396
    113396 Member Posts: 65 ✭✭

    Yes it applies to them - it is easy to set up in super fund details in payroll items

  • Kris_Williams
    Kris_Williams Member Posts: 3,199 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    What I do in this case is pay them their hours based on 2 rates. The first rate - normal, which attracts super and the second rate Saturday loading, or something similar, that doesn’t attract super.

  • margaret_9248620
    margaret_9248620 Member Posts: 47

    Ok how does that get setup in reckon?

  • Kris_Williams
    Kris_Williams Member Posts: 3,199 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    Have you read my suggestion above?

  • 113396
    113396 Member Posts: 65 ✭✭

    What version of reckon are you using?

  • margaret_9248620
    margaret_9248620 Member Posts: 47

    We are using reckon hosted r2 2020

  • 113396
    113396 Member Posts: 65 ✭✭

    I use Desktop Reckon Accounts Premier Professional & it is easy. I am unsure about hosted.

    In Mine - in each Super Fund setup (manage / edit payroll item) you tab through preferences and there is a tick box for the $450 threshold option.

  • Kris_Williams
    Kris_Williams Member Posts: 3,199 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    Hosted exactly the same I believe, yep same box. But she has to use 2 pay rates so that only the standard portion of the rate incurs super. Having said that if she only works on Saturdays the entire rate may be eligible for super after the 450, depends on the award she’s under. I would check with accountant

  • margaret_9248620
    margaret_9248620 Member Posts: 47

    Oak thanks for all the help

  • 113396
    113396 Member Posts: 65 ✭✭

    Most of my staff have different pay rates for various shifts etc.

    As an example:

    I have overtime that is called Time & a half with SGL and another called Time & a half Overtime.

    The first one has Super set up & the second one does not attract super. I pay depending on which one it was & the super automatically does or does not get allocated. Others similar like double time with super or Double Time overtime (does not have super). Other payroll item do not attract super eg Workers comp or jury duty and they are payroll items that do not have super attached

    Then each super fund in payroll items / edit - has the option to tick the $450 threshold. After that it all happens automatically. Hope that helps

  • Kris_Williams
    Kris_Williams Member Posts: 3,199 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    Yes agree with all that and have a similar setup

  • margaret_9248620
    margaret_9248620 Member Posts: 47

    Ok so how do you tag the pay rate as ordinary hours than?

  • Kris_Williams
    Kris_Williams Member Posts: 3,199 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited June 2021

    Can you call me 0415940843, any time, tonight if you wish. I’m in Sydney so ok for another hour