Additional Super not included in Payroll Tax calculations in Payroll Premier

Legacy KB ID: 4796

Question

Payroll Tax laws specify that all pre-tax super contributions must be included for the calculation of State Payroll Tax.  Payroll Premier has a Statutory Super column, and Super Salary Sacrifice amounts are included with Gross Pay, but no provision is made for Additional Super amounts. 

Answer

Payroll Premier only includes Statutory Super amounts in Payroll Tax calculations.  Super Salary Sacrifice is accommodated by it being included with Gross Pay amounts.

The chief pre-tax additional super item in Payroll Premier is Employer Additional. 

 

Workaround

You will need to determine the total amount of pre-tax Additional Super paid (like Employer Additional) to employees and calculate the amount of additional payroll tax liability of this amount and add it to the payroll tax amount suggested by Payroll Premier.

To determine the amount of Employer Additional paid to employees:

1.   Click on the Reports Icon;

2.   In the Select Reports to Print, click on Superannuation and then double click on Super by Funds Report;

3.   Select a Date Range;

4.   click on the Edit Report Icon and then the Filter icon;

5.   Click the down arrow until you get to the Superannuation button and click on it;   

6.   Double click on Description under Available Fields to enter it into the Filter box;

7.   Click on the ‘ = ‘ sign on the right so that it appears in the Filter Box;

8.   In the filter box do not change the position of the cursor and type in the name of the super item to filter for – Employer Additional (EA)

a.    You must type it in exactly how it appears in the Desc. Column and include any characters that do not show because of the width of the column;

9.   Click Save to see the report with only the selected super type;

10. Memorise this report for future use:

a.    File > Save As > Yes;

b.    In Report Settings, enter a Name: like Payroll Tax Additional super

c.    Save.

11. Note the Grand Total for the Amount column and times this by the applicable Payroll Tax rate for your State as expressed as a decimal.  That is, 5.45% is expressed as 0.0545.  This is the additional amount of Payroll Tax that must be added to the amount Payroll Premier calculates on the Payroll Tax Report. 

 

Care:  in some cases the Payroll Tax Report will indicate that no payroll tax is payable, but when the amount of Additional Super is added, the threshold level is breached and payroll tax becomes payable.  You will need to calculate the amount applicable for payroll tax.  This will be Total Pay minus threshold times by the payroll tax rate. 

 

How did we do?

Related Articles

Powered by HelpDocs (opens in a new tab)

Powered by HelpDocs (opens in a new tab)