Question: Can I control/adjust the amount of super that an employee will receive within a payroll?
Yes, you can and there are several different ways to do this. Your approach will depend on your scenario
- Pay an additional percentage amount per payroll as an Additional Super Contribution.
- Manually increase the amount of SGC super within a single payroll.
- Setup an Employee's Super Salary Sacrifice Allowance.
- Setup an Employee's Super Co-Contribution Allowance.
- Super payments to Directors.
Pay an additional percentage amount per payroll as an Additional Super Contribution.
ClockOn provides the option for employers to contribute an additional percentage of super into the employee's super funds automatically on a per payroll bases, to set this up follow the steps below
- Open the Ruleset that the employee is attached to and select the Super side panel item
- Adjust the SGC agreed percent to equal the total agreed amount to the employee and ensure that the SGC minimum percent is set to the current SGC percentage as advised by the ATO.
In the example above the employee has an agreed 12% and a minimum of 9.5%.
This will pay the employee the full 12% at payroll and for super reporting purposes split the 9.5% as SGC and the additional 2.5% as an Additional Super Contribution bringing the total to the full 12%.
Manually increase the amount of SGC super within a single payroll.
You may have a requirement to increase an employee's super as a one-off additional SGC amount.
To do this generate payroll and add the amount to the employee's existing Employer Contribution amount.
Setup an Employee's Super Salary Sacrifice Allowance.
Please refer to the Setup of Super Salary Sacrifice article.
Setup an Employee's Super Co-Contribution Allowance.
Please refer to the Setting up Super Co Contribution article.
Super payments to Directors.
Super payments to directors can be split into two categories
- SGC that the employer has delayed till EOFY for financial reasons.
- Director Fee bonus payments that have has elected to sacrifice to super.
Based on the information provided from the ATO, (https://www.ato.gov.au/Business/Super-for-employers/Working-out-if-you-have-to-pay-super/) directors are due SGC super contributions in the same way as a standard employee.
Users will need to ensure that this amount has been assigned to the employee prior to the final submission for the financial year, if you have elected to retain this amount up until this point then you will need to pay this using the instructions within the Manually increase the amount of SGC super within a single payroll. instructions.
As it is not uncommon for Directors to receive a bonus amount per year, some elect to put that amount directly into their super funds as a salary sacrifice amount rather than receive the funds directly rather than incurring additional tax.
To set this up follow the steps below
- Create a Before-Tax Allowance, and set the PAYG Location to Directors Fees Allowance
- Create a Super Salary Sacrifice Allowance and set the options as per below
- Enter the amounts for the allowance on the payrolls screen to process the amounts
(The above example shows a director's fee of $50 or which is then allocated directly to super via a salary sacrifice.)
By setting the allowances up this way the end result is that the entire amount of the bonus allowance will be allocated to the Super Salary Sacrifice amount.