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Payrun in June 2022 is calculating super guarantee on ordinary times earnings below monthly threshd

Marc_CS

Hey there,

The June 2022 monthly payrun is calculating a super guarantee on ordinary time earnings below the $450 monthly threshold.

Two examples:

Earnings $211.20 calculated superannuation $45.53

Earnings $375 calculated superannuation $75.00

Every month's payrun during FY2022 before June 2022 had no superannuation calculation.

I understood during FY2022 if monthly earnings were below $450 there was no entitlement to superannuation.

I think the June 2022 month payrun calculation of superannuation is incorrect, and I am concerned about 2022 EOFY finalization.

Please explain what will happen if I submit the June 2022 payrun 'as is' with a displayed superannuation amount, then complete the 2022 EOFY finalization afterwards.

Thank you,

Marc_CS

Comments

swakhlu01 .

@Marc_CS In my version 2.24.19 of Payroll app I attempted a payrun with date 30June2022 for period 1 June to 30June and amount of $100 as gross earnings. The system calculated NIL superannuation. However using Payrun date 7 July 2022 with payperiod 1 Jul 22 to 15 Jul 22 I get $10 superannuation for the $100 earnings. (default is still 10% instead of 10.5%).

So the observations you have given are very bizarre. Are you using the default Ordinary earnings in the Payroll app? What is the superannuation rate being displayed in the Payrun?

Rav

Hi @Marc_CS

What is the pay date that you have entered for this pay run?

Below are two pay runs that I've created in my app just now as a test. Both pay runs used the default Ordinary earnings item.

The left with a pay date in the last financial year with no super generated for the balance in the pay run.

The pay run on the right dated in this new financial year which generates super for the same amount of earnings.

Marc_CS

Hey thanks for the responses.

In my previous message the two examples:

Earnings $211.20 calculated superannuation $45.53

Earnings $375 calculated superannuation $75.00

The pay date is 28th June 2022.

The App is displaying "based on 10% rate".

I note the App version reads 2.19.36.

Rav

Hi @Marc_CS

A couple of things, first check if this employee(s) has been included in any other pay runs throughout the course of the month that may have tipped them over the previous $450 threshold. That includes pay runs that are in draft status.

Secondly, update to the latest version of the Payroll App. Check your app store to download the app update to the current version 2.24.19

Marc_CS

Hey Rav,

Yes, the May month payrun had a pay date 1st June 2022 and the June month payrun had a pay date of 28th June 2022.

What would be the best way to avoid superannuation calculated for the June month payrun?

Resubmit 1st June 2022 payrun - change to draft form. Can the pay date be changed when the payrun is reverted to draft form?
Would it work out to delete the above original payrun and create a new payrun with pay date 31st May 2022 representing the May month payrun?
Currently, 1st June pay date and 28th June pay date are in draft form. What to do next with the objective to have no superannuation calculated for the June month payrun.
I've updated Reckon Payroll App to 2.24.19 version.

Rav

Before we go down that route, can you confirm if you checked the suggestion from my previous reply? (Copied below)

... check if this employee(s) has been included in any other pay runs throughout the course of the month that may have tipped them over the previous $450 threshold. That includes pay runs that are in draft status.

In terms of moving forward from here, I'd recommend that you delete these two payruns and recreate them from scratch and ensure that you give them a pay date in the previous financial year.

You have to ensure though that there are no other pay runs within the month that are pushing these employee balances over $450 and that includes any other draft pay runs in your list for that corresponding month.

Let me know how you get on.

Marc_CS

Hey Rav,

I believe I have reached an acceptable conclusion for everything except for one employee and payrun.

This employee was paid earnings

$187.50 May 2022 month payrun - pay date 1/6/2022; no superannuation

$187.50 June 2022 month payrun - pay date 28/6/2022; $56.25 superannuation calculated

There were no other payruns with pay dates in June 2022 including draft ones.

$56.25 superannuation would not be calculated on the above combined earnings at 10% super rate, and no other super rate is entered as a substitute.

My theory how the $56.25 superannuation was calculated is the Reckon Payroll App has included the $187.50 April 2022 month payrun - pay date 2/5/2022; no superannuation. The App combined the three payruns which total earnings of $562.50 and calculated 10% superannuation - $56.25. The App is doing a calculation on a quarterly basis - June 2022 quarter calculation. The App has never done this before for any previous quarter earnings.

I think this $56.25 superannuation calculation for pay date 28/6/2022 is incorrect because the earnings paid in the June 2022 month did not exceed the $450 threshold.

What can be done or how to proceed from here?

Thank you for your responses!

Rav

You can delete this pay run and recreate it, ensure it has the correct balance for super and then send through the resulting STP submission as an adjustment (tick the 'send as adjustment on the declaration screen).

Marc_CS

Hey Rav,

When ahead and deleted pay date 28/6/2022 payrun, then recreated it.

Thankfully, the App didn't calculate super this time.

Cheers again for your responses!

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