Overview

The Allowances tab allows you to personalise employer contributions. When a superannuation payroll rule generates an Employee Super Funds allowance in Transaction View, it uses the Employee Super Funds | Allowances tab field values to determine the transaction rate. However, payroll rules cannot generate transactions for an allowance if the relevant Employee Super Funds | Allowances tab field is empty or no corresponding allowance code is specified in the associated Superannuation Fund | Allowances tab.

Important: If any of these fields do not have an allowance code specified in the associated Superannuation Fund | Allowances tab, then that field is disabled.

Column fields

The Allowances tab contains the following column fields:

Contribute under minimum?

Yes/No field that indicates whether employer contributions (%, $, RESC %, RESC $) are made if the employee’s salary or wages are below the monthly minimum earnings amount.

Influence?

Yes/No field that indicates whether the employee was able to influence employer contributions (%, $) paid when the employee’s earnings are below the monthly minimum earnings amount or above the maximum quarterly earnings threshold. Contributions that the employee has influenced are reported as RESC.

Contribute over maximum?

Yes/No field that indicates whether employer contributions (%, $, RESC %, RESC $) are made if the employee’s Ordinary Time Earnings (OTE) are above the maximum quarterly earnings threshold.

Fields

Employer (%):

Value of the non-RESC portion of the employer’s percentage contribution. If you copy across defaults, then the Employer (%) value is copied from the Superannuation Fund record.

Important: This Employer (%) value overrides the Superannuation Fund | Allowances tab | Employer (%) value. If the Employer (%) value in the Employee Super Fund is zero or blank, then the payroll rule will not generate any employer allowance transactions.

Employer ($):

Value of of the non-RESC portion of the employer’s fixed contribution. Use this field in reports or payroll rules to determine if the employer is contributing the required amount to the employee’s superannuation.

Note: The employer can agree to pay $10,000 in superannuation as part of the employment agreement. Employees can belong to many superannuation funds, so the employer could contribute $2,000 to two funds and $6,000 to a third fund.

Salary Sacrifice (%):

Value of the non-RESC portion of the Salary Sacrifice percentage.

Salary Sacrifice ($):

Value of the non-RESC portion of the Salary Sacrifice fixed value.

Note: Salary sacrifice is usually set up as a deduction so these fields are used only if you have set up salary sacrifice allowances for costing purposes.

Employer % RESC

Value of the RESC portion of the employer’s percentage contribution.

Employer $ RESC

Value of the RESC portion of the employer’s fixd contribution.

Salary Sacrifice RESC (%):

Value of the RESC portion of the Salary Sacrifice percentage.

Salary Sacrifice RESC ($):

Value of the RESC portion of the Salary Sacrifice fixed value.

Note: Salary sacrifice is usually set up as a deduction so these fields are used only if you have set up salary sacrifice allowances for costing purposes.

Threshold Checks

When you process a pay, PayGlobal bases minimum/maximum threshold checks on the Superannuation PTD associated with that pay. As a result, you must not change an employee's superannuation fund details or their contribution and influence details part-way through a Superannuation PTD. If an employee's superannuation details change, then you need to :

1. Create a new Employee Super Fund record that starts in the first Period PTD associated with the next Superannuation PTD.
2. End date the old Employee Super Fund record.

Unreconciled Superannuation Contributions

When an employee earns less than the monthly minimum earnings in a Superannuation PTD, PayGlobal still calculates their potential superannuation contributions and records these amounts against the Employee Super Fund. If that Employee Super Fund is deactivated before the employee reaches the monthly minimum earnings in that Superannuation PTD, then the potential contribution amounts remain recorded against the inactive Employee Super Fund, so they are unreconciled superannuation contributions.

If the superannuation contribution is a percentage (%), PayGlobal automatically transfers unreconciled superannuation contributions to the new Employee Super Fund record when the employee's earnings exceed the monthly minimum.

PayGlobal calculates and assigns superannuation contributions to the current Employee Super Fund records when all the following conditions are met:

• The Superannuation Fund in an employee's Employee Super Fund record was changed or another record added during the Superannuation PTD period.
• Before the employee’s Employee Super Fund changes occurred, their earnings in that Superannuation PTD period had not exceeded the monthly minimum earnings.
• The employee has unreconciled superannuation contribution amounts for that Superannuation PTD.

However, if the superannuation contribution is a fixed amount ($) and the Employee Super Fund is deactivated before the employee reaches the monthly minimum earnings in that Superannuation PTD, then no reconciliation occurs. As a result, fixed amount ($) superannuation contributions are date effective.

See also

Reportable Employer Superannuation Contribution (RESC)

Employee Super Fund

Employee Super Funds – Details

Employee Super Funds - Membership (Aus)

Employee Super Funds - Other Member (Aus)

Employee Super Funds - Bank Details

Employee Super Funds – Deductions