Understanding Superannuation Recording

This section describes the manual method of creating superannuation payments.

Note: In 2005, superannuation legislation changed. To comply with those changes, and to automate the process of creating superannuation payments, the payroll method of superannuation management was created. We recommend, but do not require, that you use the payroll method to manage superannuation information. If you are currently using the manual method, you can continue to use it indefinitely, or as you implement and test the payroll method. The payroll method is discussed in the previous section of this chapter.

If the organization has employees who are eligible for superannuation contributions, you can use DBAs to calculate those contributions. You can set up DBAs to automatically calculate employer and employee contributions to superannuation funds during the payroll process. You set up one or more deductions to calculate the employee salary sacrifice, and you set up one or more benefits to calculate the employer contribution.

When you process employees through a payroll cycle, the system calculates the superannuation contributions for each employee. You can review these amounts by processing the Superannuation Contribution by Employee report (R75A0007). This report lists the amount of each superannuation DBA for each employee who was processed in the payroll cycle.

You can use the Superannuation Contribution by Employee report to determine the amounts that you must send to the third-party administrators of the funds to which you are contributing. After you send the contributions to the fund administrators, you must record those payments in the system. You must also report information about the payments to employees to comply with ATO regulations.

You can enter superannuation payments individually, using the Superannuation Payments program (P75A0301), or you can create a spreadsheet that you can use to record payment information. You can then import the information from the spreadsheet into the system.

Superannuation payment information is stored in the Superannuation Payment table (F75A0301) regardless of whether it is entered individually or imported from the spreadsheet.