How can I contribute a fixed superannuation amount for an employee?

If you have agreed to contribute a fixed superannuation amount for your employee (e.g. employee's salary is over Maximum contribution threshold base, and you agree to contribute $ 25,000 each year for employee), below are different ways to action on Employment Hero Payroll / HeroPay

 

1. Change Maximum contribution threshold base defaulted by system 

What is Maximum contribution threshold base?

The maximum super contribution base is used to determine the maximum limit on any individual employee's earnings base for each quarter of any financial year. More details can be found here.

Every year ATO will inform a new base and HeroPay will update automatically. 

How to change? 

  • On Hero Pay/ select the employee & then Pay Run Default
  • Go to Quarterly maximum super contribution base, tick override & change amount to $ 65,787.50. Please note you cannot override the base if employee is linked to a pay rate template.
  • Then Save

Super contribution will be calculated at contribution rate (existing 9.5%) of employee's salary until employee's salary reach Maximum contribution base for the quarter ($ 65,787.50). Total super for the quarter if employee does not take any unpaid leave in the quarter will be $ 6,249.81.

Once you have overridden Quarterly Maximum Contribution Base for an employee, HeroPay will not automatically update the base for this employee.

  

2. Super Adjustment 

- On HeroPay/ select employee/ Pay Run Settings/Pay Rates
- Refer to column Super Rate / tick Override and change 9.5% to 0% for pay categories employee would get paid for. This is to ensure system will not contribute super on top of the fixed amount you will set later.
- Then Save

- In the same employee record, go to Pay Run Inclusion
- Click Add under Super Adjustment
- Select Super Guarantee and enter fixed amount, start/end date for this super adjustment.
- Then Save

Once this is done, fixed amount will appear in applicable future payruns.

However this approach has a shortfall that in the payrun employee is on unpaid leave, which may reduce their income below the cap for maximum contribution, their super calculation will be capped at the fixed amount. 

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