Salary Sacrifice reporting for STP

Wagemaster, prior to Single Touch Payroll release in May 2018, used Ordinary Time Earnings (OTE) for both SG contributions and payments that made up the SG monthly threshold. This was corrected in the first release of Wagemaster for STP.

The calculations were separated, but in doing so, deductions before tax that were NOT a Super Deduction (e.g. Salary Packaging salary sacrifice) were incorrectly included in the monthly threshold, effectively reducing it.  This has the effect of reducing the Taxable Gross earnings which means the employee may not reach the monthly minimum for SG to calculate.  When this occurs, no super is calculated.

For example, Allowance for Salary Packaging deduction that is ticked as Taxed.

It is advisable that you monitor the SG contributions for employees with before tax deductions and review past pays to adjust SG as needed.  

To identify instances where no SG contributions were calculated, a user defined query has been developed, which, when run, will provide detail on employees’ gross for superannuation (SG).  In instances where gross for superannuation is above the monthly threshold, and no SG has calculated, an adjustment for superannuation may be required.

User Defined query – Super SG Contributions and Before Tax Deductions

Please note – where the deduction before tax is for superannuation salary sacrifice, SG contributions will still occur. It is only when Taxable Gross is reduced below the monthly SG threshold by a before tax deduction (allowance) that SG may not calculate.

Save the UDQ file to the Queries folder within WageEasy.  The location of this folder can be found in Wagemaster from File > Company Details > Configuration > File Locations – User Defined Queries.  Once saved, run the query from HR > User Defined Queries – Super SG Contributions and Before Tax Deduction.

From the Query Parameters screen, enter the required Super Threshold and SG Percent and OK.

Generally, the Super Threshold will be $450 and the SG percentage 0.095 (9.5%) although a number of Modern Awards specify a $350 super threshold and some agreements a different SG percent. 

Check your Award setting for this under the Award > Payments > Superannuation and enter the Super Threshold and SG Percent as required.

 The reported detail can be grouped by Employee Number (click and drag the Employee Number heading to the top of the grid)

Where an employee shows a Deduction amount and also populates for Gross for Super but no corresponding Employer Compulsory Super, then an adjustment may be required.  The query will also provide an indication for SG based on the gross for super.  This amount, once verified, should be entered as an adjustment.

The query can also be exported to Excel for further review and analysis.

It is advisable that superannuation SG only be adjusted in the last pay of a month so that the system does not recalculate it based on setup in the Awards.  An adjustment for the missed SG contributions could be added to the normal pays’ contribution, alternatively as a supplementary payslip with an adjustment for the SG contributions entered only. 

For example,

Employee is showing on the query as having missed SG for September of $94.83.

Supplementary payslip at the end of October with values for SG only entered (Ref: Wages > Adjustments > Superannuation – Superannuation Guarantee)

Please also consider reporting of adjustments to superannuation funds.  If contributions for a given period have already been reported, it would be best to wait until end of the next month to process and report the adjustments.

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