SGC 10.5% statutory rate

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.

PDF shot 1.pdf

PDF shot 2.pdf

PDF shot 3.pdf

Accepted answers

faigey

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.

All comments

Rav

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.

faigey

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

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?

faigey

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

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.

faigey

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.

Screen Shot 2023-03-31 at 4.53.08 pm.jpg

Screen Shot 2023-03-31 at 4.51.25 pm.jpg

Screen Shot 2023-03-31 at 4.49.26 pm.jpg

faigey

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.

faigey

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

I now know how to correctly process an amendment.

Apologys