Compulsory Superannuation Overview
The minimum superannuation you must pay in Australia for each eligible employee is currently10.5% of their ordinary time earnings (OTE) for the year 2022/2023. This is scheduled to progressively increase to 12% by 2025.
For the purposes of the SGC, the definition of salary and wages has been extended to include:
- Commissions.
- Bonuses.
- Payments for the performance of duties as members of an executive body of a body corporate (i.e. Directors’ fees).
- Remuneration of a member of the Parliament of the Commonwealth or a state, or the Legislative Assembly of a territory.
- Payments to persons, who perform, present, participate in or provide services in connection with any music, play, dance, entertainment, sport, display, or promotional activity involving the exercise of intellectual, artistic, physical or other personal skills.
- Payments to persons who perform or provide services in connection with the making of any film, tape or disc, or any television or radio broadcast.
- Payments to employees of the Commonwealth, of a state or of a territory.
- Remuneration of a person holding an office as a member of a local government council.
- Over-award payments.
- Shift loading.
- Remuneration while on annual, long service leave or sick leave.
- Cashed in long service leave where continuing to work;
- Allowances (not reimbursement of expenses or cents per kilometer allowances);
- Casual loading.
- Government wage subsidies paid to employers who employ particular types of people, e.g Job Start Allowance.
- As of 2022 Superannuation must be paid to individuals earning less than $450. This means that the (SGC), must be paid to all wage earners in Australia.
SapphireOne Payroll Journals
SapphireOne’s Payroll/HR creates the Accrual Journal at the time of processing your Payrun.
Example Accrual Payroll Journal (GJ)
| Description | Tax Code | Debit | Credit |
|---|---|---|---|
| Sales Salaries Expense | W | 1,061.50 | |
| Office Salaries Expense | W | 520.00 | |
| PAYG Withholding | W | 262.08 | |
| Union Subscriptions Payable | W | 6.00 | |
| Medical Insurance Premiums Payable | W | 48.80 | |
| Life Insurance Premiums Payable | W | 20.00 | |
| Social Club Payable | W | 29.00 | |
| Salaries Payable | W | 1,215.62 |
Within SapphireOne the following transactions may now be recorded.
Example Payment to Employees (MP)
| Description | Tax Code | Debit | Credit |
|---|---|---|---|
| Salaries Payable | W | 1,215.62 | |
| Cash at Bank | 1,215.62 |
Example Payment of Deductions (MP)
This transaction may be split and recorded through various Vendors if required.
| Description | Tax Code | Debit | Credit |
|---|---|---|---|
| Income Tax Payable | W | 262.08 | |
| Union Subscriptions Payable | W | 6.00 | |
| Medical Insurance Premiums Payable | W | 48.80 | |
| Life Insurance Premiums Payable | W | 20.00 | |
| Social Club Payable | W | 29.00 | |
| Cash at Bank | 365.88 |
Example Accrual of Annual Leave and Long Service Leave (GJ)
This information may also be obtained by going to: Payroll \ History \Statement of Leave
| Description | Tax Code | Debit | Credit |
|---|---|---|---|
| Annual Leave Expense | W | 1,667.00 | |
| Provision of Annual Leave | 1,667.00 | ||
| Long Service Leave Expense | W | 100.00 | |
| Provision of Long Service Leave | 100.00 |