Compulsory Superannuation - Take Stock of Your Superannuation Contribution Requirements

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  1,061.50 
Office Salaries Expense  520.00 
PAYG Withholding  262.08 
Union Subscriptions Payable  6.00 
Medical Insurance Premiums Payable  48.80 
Life Insurance Premiums Payable  20.00 
Social Club Payable  29.00 
Salaries Payable  1,215.62 

Within SapphireOne the following transactions may now be recorded. 

Example Payment to Employees (MP)

Description Tax Code Debit Credit
Salaries Payable  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  262.08 
Union Subscriptions Payable  6.00 
Medical Insurance Premiums Payable  48.80 
Life Insurance Premiums Payable  20.00 
Social Club Payable  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  1,667.00 
Provision of Annual Leave  1,667.00 
Long Service Leave Expense  100.00 
Provision of Long Service Leave  100.00 

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