SGC 10.5% statutory rate

faigey
faigey Member Posts: 37 ✭
edited January 3 in Reckon Payroll 🚀

I process pay runs on a monthly basis.

My settings for SGC are set at statutory rate default rate of 10.5%.

Now for all monthly pay runs from July 2022 to January 2023, the payroll app has correctly calculated SGC at this 10.5% rate.

However, I have suddenly become aware that for my processed monthly pay runs of February 2023 and March 2023 the payroll app has calculated SGC at the previous 2022 F/Y rate of 10%.

I have checked and rechecked my settings which appear to be correct. The only way I can now get the app to calculate at 10.5% is to manually change the "rate basis from statutory rate to percentage " and then specify 10.5% prior to processing/sending off .

Has there been a change in the app making it necessary to go through the above step. As far as I can recall this has not been necessary for all of my previous pay runs ??

I have attached three files labelled PDF shot 1; PDF shot 2: PDF shot 3 to illustrate this issue.



Best Answer

  • faigey
    faigey Member Posts: 37 ✭
    Answer ✓

    Please disregard my last comment/query.- re amendment

    I have been attempting to make an amendment wrongly.

    I know now how to process an amendment to a payrun.

    Apologies.

Answers

  • Rav
    Rav Administrator, Reckon Staff Posts: 15,190 Community Manager Community Manager
    edited March 2023

    Hi @faigey

    I just had a look and it seems to be working normally in my case so lets go over a few things. Looking at your screenshots, it looks like you're creating a custom super item, is there a specific reason for that over using the default Super Guarantee item?



    Also, when I look at the screenshot you've added of the pay run creation screen, it showing the Percentage option has been selected at 10% rather than Statutory Rate.


    If you tap on that and change the selection to 'Statutory Rate', that should switch it to the 10.5% statutory calculation.

    Can you confirm?











    Also just a quick tip, when adding a screenshot to your discussion, use use the image option as opposed to the attachment option and it will add your screenshot directly to the post.



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  • faigey
    faigey Member Posts: 37 ✭

    Hi Rav

    Firstly thanks for the tip. Apology - In future I will use the image option. Hopefully it will not be required too often to discuss any app problems.

    I can confirm that what you describe is in fact what I have been doing in order to switch to the 10.5% statutory calculation. And this certainly works.

    However, what is curious is the fact that when I create the pay run- the app automatically comes up initially as shown in the screenshot ie "Percentage 10%".

    Is this what the app normally does? I cannot recall the app doing this on previous pay runs? Why does it not come up by default at 10.5% instead of having to tap and change the selection to 'Statutory Rate'. As stated previously - my default settings for Superannuation are correctly set for 10.5%?

    Regards

  • Rav
    Rav Administrator, Reckon Staff Posts: 15,190 Community Manager Community Manager

    Hi @faigey

    Just trying to find any commonalties so forgive all the questions -

    • Is this occurring every single time you attempt to create a pay run?
    • And, does it only occur when you use that specific custom earnings item you've created?
    • Also, does it occur on all employees in the pay run or just a select one?



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  • faigey
    faigey Member Posts: 37 ✭

    Hi Rav,

    (1) Yes -it is occurring every single time I create a pay run.

    (2) It occurs on any earnings I create . ie eg if its $7500 or $8000 or any other earnings figure I use and it occurs on whether I use salary or ordinary earning items.

    (3) There is only one employee . So it only occurs for this employee. I suppose I could create a new artificial employee and test to see if the same thing happens?

  • Rav
    Rav Administrator, Reckon Staff Posts: 15,190 Community Manager Community Manager

    I can't seem to replicate this when using either the default SG item or a custom super item that I've setup so can't really add anything meaningful to this right now 😕

    I'd be interested to hear from the wider Community as well if they're also experiencing anything of the same sort of behaviour.


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  • faigey
    faigey Member Posts: 37 ✭

    Hi Rav

    Another issue I have now struck -all to do with the 10% vs 10.5% SGC. I am trying to amend two of my previously (SGC incorrect at 10% instead of 10.5%) pay runs which was forwarded to ATO.

    You will have read from my previous comments " However, I have suddenly become aware that for my processed monthly pay runs of February 2023 and March 2023 the payroll app has calculated SGC at the previous 2022 F/Y rate of 10%."

    Having done this I have attempted to amend my February and March 2023 pay runs by changing the 10% rate to 10.5% . My aim was then to resubmit these pay runs , amended, to ATO.

    See further for images illustrating this.

    I find that the App states "Only pay run draft is editable"?

    That being the case - can you please advise on the method to amend a pay run , by only amending the SGC % and resubmit to ATO.


  • faigey
    faigey Member Posts: 37 ✭

    Please disregard my last query/comment.- re making an amendment to a payrun.

    I now know how to correctly process an amendment.

    Apologys