Superannuation Guarantee changes in QuickBooks Online

On 1 July 2022, the Superannuation Guarantee (super) rate will increase from 10% to 10.5%. This is part of the government’s long-term plan to increase the rate to 12%. Super is the minimum percentage of your employee’s salary that you must pay into their superannuation. 

QuickBooks will:

• automatically calculate the minimum super percentage rate for any pay runs created with a date paid on or after 1 July for that financial year period 
• will update any reference to the prior super rate on 1 July to reflect the new super rate for the current financial tax year

However, there are exceptions that may prevent the super rate from updating. Don’t worry, we’ll show you how to check each setting so that QuickBooks can automatically calculate these rates for you.  

Step 1. Turn on Automatically update super rates

1. Go to Payroll, then select Payroll Settings.
2. Select Details. 
3. Tick the checkbox next to Automatically update super rates.
   1. This checkbox setting is ticked by default and will only be unticked for a business due to a manual override. If left unticked, QuickBooks won’t apply any super rate updates at all within the payroll account.
4. Save.

Step 2. Check the super rate for each pay category

1. Go to Payroll, then select Payroll Settings.
2. Select Pay Categories.
3. Select the pay category to show more details. Each pay category has a Super Rate field.

If the super value in the Super Field is 0% or anything different to the applicable super rate for the current financial year (FY), then QuickBooks won’t update the super rate for that category. 

For example, if a pay category has the value of 8% in the Super Rate field while transitioning from FY 21/22 to FY 22/23. QuickBooks won’t update the super rate for FY 22/23. This is because the rate isn’t the applicable minimum rate for FY 21/22. In this case, QuickBooks will keep the super rate at 8%. 

If the value in the Super Field is the same as the applicable super rate for the current tax year, then QuickBooks will update the super rate for that category automatically. For example, when transitioning from FY 21/22 to FY 22/23, any pay category that has a super rate of 10% will be automatically updated to 10.5% for FY 22/23.

Audit the super rate for business pay categories

You can do a bulk audit of the super rate for the business pay category by exporting the list from QuickBooks. To do so:

1. Go to Payroll, then select Payroll Settings. 
2. Select Pay Categories.
3. Select Export. 
4. Select the file type and select Download. 
5. Open the exported file and review the Default Super Rate column. 
6. To update super rates, go back to QuickBooks and select Pay Category List.
7. Select the pay category you wish to update. 
8. Change the rate in the Super Rate field. 
9. Select Save.

Step 3. Check the override checkbox in the Super Rate fields on pay rate templates

Before you start, make sure the Automatically update super rates box in Step 1 is ticked.

The next step will be to review any pay rate templates that have been created by the business rather than templates linked to pre-packaged Awards. If any of the following applies:

• If the Super Rate fields have been overridden, the Override checkbox is ticked.
• The value in the Super Rate field is 0%, or
• The value in the Super Rate field is anything different to the applicable super rate for the current financial year.

Note: QuickBooks won’t update the super rate associated with the pay category in the pay rate template. See examples in Step 2. 

If the value contained in the Super Rate fields is identical to the applicable super rate for the current financial year, then QuickBooks will update the super rate associated with the pay category in the pay rate template.

Check if your business has its own pay rate templates

1. Go to Payroll and select Payroll Settings. 
2. Within the Pay Conditions list, select Pay Rate Templates.
3. Here you’ll find a list of existing pay rate templates, if any. You’ll also see employees who are linked to the templates.

Note: If there are no pay rate templates listed, you can move on to Step 4. 

Audit the super rate settings of existing pay rate templates

1. Go to Payroll, then select Payroll Settings.
2. In the Pay Rate Templates page, select Export.
3. Select the appropriate Pay rate template, Data type and File format.
4. Select Download.
5. Open the exported file and review the Super Rate columns.
6. If any values need to be updated, make the changes and save the file override the existing value. 
7. Save the file. 
8. In QuickBooks Online, select Import and re-import the file.

Step 4. Check the Override checkbox in employee Pay Rates

If the Automatically update super rates box in Step 1 is ticked, here's how you can determine if the automatic updates will apply. You’ll need to review the Super Rates fields associated with all pay categories listed in the employee’s Pay Rates section. 

This is only relevant to employees that aren’t attached to a pay rate template. Similar rules apply: 

• If the Super Rate fields have been overridden, the Override checkbox is ticked.
• The value in the Super Rate field is 0%, or
• The value in the Super Rate field is anything different to the applicable super rate for the current financial year.

QuickBooks won’t update the super rate associated with the pay category in the employee's Pay Rates section. See examples in Step 2.

Content sourced from Employment Hero