Understanding Superannuation Deductions and Benefits

You set up benefits and deductions to calculate the amount that an employer contributes to an employee's superannuation fund automatically and the amount that an employee contributes to their own superannuation funds. Employers in Australia are required to contribute to employee superannuation funds according to legislative requirements. Currently, employers are required to contribute an amount equal to nine percent of employee earnings if the employee earns 450 AUD or more per month. Employees and employers can make additional contributions to the funds.

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.