SGC on leave loading

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  • Updated 5 days ago
Hi,

The system isn't calculating SGC on leave loading.

The ATO's SGC checklist states leave loading should form part of OTE when not overtime related: https://www.ato.gov.au/Business/Super-for-employers/How-much-to-pay/Checklist--salary-or-wages-and-o...

Can someone please let me know why Payroll Premier does this and how to fix it?
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Kali

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Posted 8 months ago

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Tanya Briggs, Accredited Partner

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I looks like this issue has been noted and put into a backlog to be resolved.  The workaround is to edit the rate of superannuation when you are preparing the pay so that the super calculated is enough to cover the leave loading too.
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Kali

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Has this been a recent change by the ATO as i seem to remember that once upon a time LL didn't attract SGC?

It's a pretty significant miss by Reckon and one i hope they fix ASAP as a lot of people would be unaware the system is doing this and therefore opening them up to SGC penalties.
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Christine Byrne

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Does anyone know if the SGC on Leave Loading  has been rectified  as yet???
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Kali

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Where do you mean when you say 'through the payroll item' - we still manually calculate SGC on leave loading.
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Jill

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Go to Lists, Payroll Item List, Select Holiday Loading, edit, when you get to the screen Inclusions select all Superannuation Funds, Finish and close. Do the same with your super funds in the Include payments in contribution select Holiday Loading.
(Edited)
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Kali

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Hi Jill,

Is this for Payroll Premier?
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Jill

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Yes
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Kerri, Accredited Partner

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Under the Super Guarantee legislation (SGR 2009/2) an annual leave loading is not considered OTE if it relates to a notional loss of opportunity to work overtime. If there are sufficient facts to establish that the purpose of the annual leave ‘loading’ is not for overtime related reasons, it can be considered OTE.
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Kali

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Yes, understand Kerri this has been discussed on a different post. There are a bunch of common Awards where leave loading is paid as an Award condition not due loss of overtime.
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Kali

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Sorry Jill - under 'lists' i don't have 'payroll item list'?


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Jill

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I have Reckon Accounts Premier: Accountant Edition (with Payroll), you might need administrator rights
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Kali

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Ah.. that explains it.

I'm using the desktop version they're two different products.

Thanks anyway.
Hi There

I have Payroll Premier and was hoping that SGC would now be calculated on Leave Loading.

Has it? Am I missing something? 

We too have been doing the SGC manually.

Thanks :) 
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Kali

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Nope - hasn't been fixed :(
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Kris Williams

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I was always under the impression that leave loading does not attract SGC, I shall have to check up