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MYOB – Super Calculates on the Gross as well as Overtime – Is that correct?
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Published on Monday, 01 September 2014 15:31
Client - Emailed that super has calculated on the gross wage including overtime, not just the base hours. She had a look in the card and super details were the same as all other employees. “Is there somewhere else I should be looking to rectify this overpayment of his super????”
Solution - If there is super calculating on the overtime, then the Super category could have dropped the usual default exemptions.
In the Payroll Command centre, click > Payroll Categories > Super tab find the Super Guarantee category in the list, click white arrow on the side of it to open, then click Exempt, then check that the following are ticked (these will be the categories that are NOT included in calculating this super category) – tick, Annual Leave Loading, Bonus, Overtime, Redundancy, Unused Annual Leave, Unused Long Service Leave, and if created - expense reimbursements or similar wording, then OK and OK.
Note that MYOB calculates super over a month, so if there is too much in one pay it will compensate on the next and will keep checking over the month – therefore, after entering and saving the next pay, take the total gross wages and calculate 9.5% (for 2014-2015), then see if that is what the super is – the Payroll Activity Summary Report over two pays will show these Total amounts for easy comparison.
Super is 9.5% of the OTE – Ordinary Times Earnings, and the listed payments (Exempt) above are not OTE, ie. excluded from super calculation. See the ATO website about using OTE to calculate super HERE and the list of what is and is not OTE HERE.
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