Employer Benefits

According to the ATO, employers are required to contribute an amount equal to nine percent of an employee's earnings if the employee makes 450 AUD per month or more. This table describes how you might set up a benefit to calculate nine percent of an employee's monthly earnings once the employee earns 450 AUD in a single month:

Forms, Fields and Values	Explanation
On the Basic DBA Information form, enter M in the Source of Calculation field.	Source of calculation M is used to calculate benefits and deductions that are based on an employee's month-to-date earnings.
On the Basic DBA Information form, enter 8 in the Method of Calculation field.	The system calculates the benefit amount based on the employee's gross earnings. Earning limits and thresholds are set up in a calculation table.
On the Calculation Table form, set up a calculation table using these values: Table Method: GQ Lower Limit (first grid row): Blank Upper Limit (first grid row): 449.99 Amt./Rate (first grid row): 0 Lower Limit (second grid row): 450.00 Upper Limit (second grid row): 9999999 Amt./Rate (second grid row): 9.0	Based on the method and source of calculation, the system stores the employee's gross earnings for the month. The system then uses the values in the calculation table to determine the amount of the benefit. In this example, the system does not calculate a benefit amount until the employee earns 450 AUD in the month. When the employee earns 450 AUD or more during the month, the system calculates the benefit on the entire monthly earnings amount. For example, if the employee earns 300 AUD during the first payroll of the month, the system does not calculate an amount for the benefit. If the employee earns an additional 300 AUD during the second payroll of the month, the system calculates the benefit as:.09 × 600 AUD = 54 AUD If the employee earns an additional 300 AUD during the third payroll of the month, the system calculates the benefit as: (.09 × 900 AUD = 81 AUD) − 54 AUD = 27 AUD
On the Tax Instructions – Australia and New Zealand form, enter S1 in the Aust. Tax Reporting field.	To comply with Australia Taxing Office (ATO) regulations, users must specify whether a deduction or a benefit is a superannuation contribution. Superannuation information prints on the employees' PAYG payment summary form. To ensure that amounts are printed correctly, you must enter a value of S1 in the Aust. Tax Reporting field on the Tax Instructions – Australia and New Zealand form for all superannuation deductions and benefits.

You can set up as many employer benefits as necessary. After you set up the benefits, you assign them to employees using either the JD Edwards EnterpriseOne Benefits system or by manually attaching the deduction to the employee using the employee DBA instructions. You must also add the DBA code for the benefits to UDC table (07/FD).

You then set up funds and assign an employer benefit fund to the employee using the Employee Fund Allocation program (P07855). When you process payroll for the employee, the system calculates the amount of the employer contribution to the superannuation funds using these steps:

The system calculates the amount of the benefit that you assigned to the employee.
The system verifies that the DBA code for that benefit exists in UDC 07/FD.
If the code exists in the table, the system continues to the next step. If the code does not exist in the table, the system deducts the amount from the employee's pay but does not allocate the amount to the fund in which the employee is currently enrolled.
The system allocates 100 percent of the benefit to the employer benefit fund in which the employee is currently enrolled.

Note:

Be aware of these issues when setting up employer benefits:

You can assign only one employer superannuation benefit to an employee.

You can assign only one employer benefit superannuation fund to an employee. The system automatically enters an allocation percentage of 100 for that fund.