Summary

PayGlobal contains components that you can use to set up the superannuation process for most company requirements.

Australia

From 1 July 2005, most Australian workers can choose the fund that their superannuation contributions are paid into. This is in line with legislation passed by the Australian Federal Government that applies to Superannuation Guarantee Contributions made by employers on behalf of their employees.

New Zealand

KiwiSaver allows New Zealand employees to contribute a minimum of 3% of their gross pay to a voluntary, work-based savings initiative to help them save for retirement.

Compliance

PayGlobal enables you to:

• Record full details of each superannuation fund used in the company.
• Link allowances and deductions with each superannuation fund.
• Specify fixed and percentage values for each allowance or deduction on a superannuation fund.
• Generate transactions for SG, employer, employee, defined benefit, spousal and additional contributions.
• Deal with salary sacrifice situations.
• Deal with pre-tax and post-tax superannuation deductions.
• Reduce the number of payroll rules used when generating superannuation transactions.
• Record employee membership details by fund.
• Record a bank account in an Employee Super Fund record that is different to the bank account in the associated superannuation fund.
• Hold a history of fund membership for each employee.
• Warn for compulsory fund membership.
• Warn when the maximum earnings base is reached (where applicable).

PayGlobal can identify:

• Superannuation fund that a superannuation allowance or deduction transaction applies to.
• Bank account for each superannuation transaction.

Reporting

Superannuation transaction details are sent as a CSV file. PayGlobal also includes standard reports.

• Reports (including payslips) can show the superannuation fund that a superannuation allowance or deduction transaction applies to.
• Reports (including payslips) can show the bank account that a superannuation allowance or deduction transaction applies to.

Taxation overrides

If you use Employee Super Funds and the Superannuation Fund table, then superannuation processing does not use permanent transactions. Employee Super Funds records are not permanent transactions. Processing is controlled by payroll rules that generate superannuation transactions. If you want to use superannuation with a taxation override for fixed transactions, then you have to create two payroll rules:

• Payroll Rule 1

  Qualifying clause = "Has tax period override transaction is False".

• Payroll Rule 2

  Qualifying clause = "Has tax period override transaction is True". Action clauses to post the tax period override amount to an accumulator. Action clauses to post the allowance quantity from that accumulator.

Further Reading

For more information on superannuation, see the Australian Superannuation and Salary Sacrifice Manual or NZ Superannuation and Salary Sacrifice Manual on the PayGlobal website.