Superannuation

RayRay Member Posts: 18

I have noticed in your payroll app the allocation of super is incorrect as far as the ATO is concerned. I realise this is just a simple bookkeeping program but surely you could have the same formula as the ATO.

When filling out the payruns, I enter the correct pay, which then, Rekon calculates the amount of Super required. Instead of adding that to the total paid, it deducts it, leaving a new total paid.

As far as the ATO is concerned if I am paid $40,000 per annum then my Super will be $4,000, meaning my total income is actually $44,000 NOT $36,000 as your app shows.

This is a frustrating error, as at the EOFY the bottom line will not be correct with BAS, Workcover etc.

You need to rectify this.

Comments

  • RavRav Administrator Posts: 11,676 Community Manager

    Hi Ray,

    Can you detail the components of the payrun and post a screenshot of the pay run you are creating which shows the super deducting from your earnings.

    The below example is obviously not a realistic one in terms of pay period, hours worked etc but is more just for illustrative purposes. You'll see I've created a pay run for $40,000 at the default rate of 10% super which shows $4000.00 allocated to super both in the pay run and the Pay Summary.


  • swakhlu01 .swakhlu01 . Member Posts: 239 ✭✭✭

    Hi Ray - Hopefully you are not looking at Salary sacrifice super that is handled differently. I have used Payroll app for a long time and I can tell you there is no such error as you point out. In no case is guaranteed Super (SGC) (10%) amount added to or subtracted from the gross wages under any system.

  • RayRay Member Posts: 18

    I am not going to post a screenshot of my payrun on this forum but I can assure you, I enter my earnings and leave as a monthly payrun. I then enter the SGC portion as calculated by the app. Once completed and sent, if I look at the summary my earnings and leave total has reduced by the amount of super I have entered.

    My earnings and leave should remain the same as the original entry but it doesn't.

  • swakhlu01 .swakhlu01 . Member Posts: 239 ✭✭✭

    It is a bit unsual - if you are using Reckon Payroll app there is no field to enter the SGC amount calculated by the app. Please confirm in which screen/ feature of the app are you entering the SGC portion as calculated by the app Payrun entry.

  • RavRav Administrator Posts: 11,676 Community Manager

    Hi Ray,

    Not asking you to share sensitive information so feel free to block out any names etc. Its more that I'd like to see what you're outlining because I can't say that I've come across the behaviour you're specifying.

    Can't do much at this stage without more info but I'd suggest the following -

    • Ensure you are on the latest version of the Payroll App
    • Are you using a custom earnings and/or leave items?
    • Does this happen on ALL pay runs?
    • Does this happen when creating pay runs for ALL employees or just one/selected?
    • Have the previous pay runs you've created in the Payroll App itself exhibited the same behaviour or is it a new occurrence?
  • RayRay Member Posts: 18

    Disregard my previous query. I have gone through each payrun and made the necessary adjustments. It seems to have rectified itself, suggesting the error is at my end not yours.

    What I would like to know about super is......the ATO allows for extra super to be paid by an employer to an employee which is not classed as 'salary sacrifice' but can be classed as 'additional employer super'. This added super is treated the same as the SGC component and is NOT classed as a deduction.

    There doesn't seem to be any option for that in this app.

    Also why can't the super be edited in the same fashion as the tax component? This would make it much easier for 'additional employer super' to be paid.

  • RavRav Administrator Posts: 11,676 Community Manager

    Glad you got to the bottom of it.

    What I would like to know about super is......the ATO allows for extra super to be paid by an employer to an employee which is not classed as 'salary sacrifice' but can be classed as 'additional employer super'. This added super is treated the same as the SGC component and is NOT classed as a deduction.

    There doesn't seem to be any option for that in this app.

    Currently the Payroll App does not support employee additional super. There is a larger piece of work going on behind the scenes with by our app team which will bring in this functionality along with other enhancements either later this year or early next year.

  • swakhlu01 .swakhlu01 . Member Posts: 239 ✭✭✭

    Hi Ray - glad all this sorted out for you.

    If you wish to pay additional superannuation to your employee beyod the SGC 10% amount then in Payroll app simply adjust the SCG rate to reflect the additional amount above the SGC rate. When the Payrun is lodged it will report this additional amount (above 10% of gross earnings) as RESC - reportable employer Superannuation Contribution in the Employees Income Statement in ATO mygov account.

    For example if gross earinings is $1000 and you want to pay $50 additional super, alter the SGC rate in payrun to 15%. The payrun will report this as $100 (10%) for SGC and $50 (15% -10%=5% ) as RESC without altering the gross earning, deductions and the tax.

    Keep in mind this is sort of a workaround option mainly in place to support many industrial award payment arrangements where Employee receives above the SGC rate super which must be reported as RESC. Based on what I am hearing, perhaps Reckon might be providing a separate field to capture the "additional superannuation contribution" to show as a payslip item and also be reported correctly as RESC in the STP reporting.

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