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Beonelyn - Product Champion
Level 3

Unexpected Super on Jobkeeper pay runs

 
Solved
Best answer June 26, 2020

Best Answers
Beonelyn - Product Champion
Level 3

Unexpected Super on Jobkeeper pay runs

Super will not accrue on Jobkeeper topups. However the topups do contribute to the gross earnings and this will cause the system to calculate super on the Ordinary time earnings. The ATO has advised that employers are not obligated to pay super if the Ordinary earnings (excluding jobkeeper top ups) are below the $450 threshold for the calendar month.

Because the system will calculate it if the employer doesn't wish to accrue the super they will need to manually adjust the super guarantee. This can be done by following these instructions:

  1. Open the affected pay run
  2. Click on the affected employees name within the pay run
  3. Click Actions
  4. Click Adjust Super
  5. Select super guarantee
  6. Enter a negative (e.g. "-$100")
  7. Save

Currently there isn't a way to automate this process so you should manually adjust the super on every pay run that accrues super due to Jobkeeper tops ups.

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3 Comments 3
Beonelyn - Product Champion
Level 3

Unexpected Super on Jobkeeper pay runs

Super will not accrue on Jobkeeper topups. However the topups do contribute to the gross earnings and this will cause the system to calculate super on the Ordinary time earnings. The ATO has advised that employers are not obligated to pay super if the Ordinary earnings (excluding jobkeeper top ups) are below the $450 threshold for the calendar month.

Because the system will calculate it if the employer doesn't wish to accrue the super they will need to manually adjust the super guarantee. This can be done by following these instructions:

  1. Open the affected pay run
  2. Click on the affected employees name within the pay run
  3. Click Actions
  4. Click Adjust Super
  5. Select super guarantee
  6. Enter a negative (e.g. "-$100")
  7. Save

Currently there isn't a way to automate this process so you should manually adjust the super on every pay run that accrues super due to Jobkeeper tops ups.

AsifRaza
Level 1

Unexpected Super on Jobkeeper pay runs

If an employee is under threshold ($18200). Why job keeper is deducting PYAG? It is mandatory to deduct PAYG on job keeper payments?

Kass_B - Product Champion
Content Creator

Unexpected Super on Jobkeeper pay runs

Hi AsifRaza,

 

The JobKeeper payment attracts PAYG Withholding tax like a regular wage. If you believe it should not have yet begun calculating PAYG, please firstly check the employee's Tax File Declaration settings:

 

  1. Go to Employees, then click on the employee's name and select Tax File Declaration from the menus on the left.
  2. Review the section Tax Calculation Options. If 'Claim tax free threshold' is not selected, ensure you select this option, then scroll down and Save

 

If the Tax File Declaration Settings are correct, the employee may have reached the threshold in pay runs for the financial year. There are numerous reports to review an employee's pay history:

 

  1. Go to Employees, then select Reports.
  2. Reports such as the Detailed Activity Report, Gross to Net Report, Pay Categories Report and so on will all provide you with the employee's pay history. Run any of these to the appropriate date range for the financial year; if the employee's total earnings are over the threshold, they will begin attracting PAYG in the pay runs. 

 

If you have checked both of these options and are still unable to determine why PAYG is calculated, please reach out to our dedicated Support Team so they can check your settings and resolve this with you.

 

-Kass