- Created by AdrianC, last modified on Aug 11, 2022
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On 1 July 2022, the superannuation guarantee contribution rate increased from 10% to 10.5%. This is the minimum super amount you must pay all eligible employees from 1 July 2022. Learn more about your super obligations on the ATO website.
The superannuation guarantee contribution rate is recorded against each of your employees in MYOB Essentials. Tell me more about setting up employees for super.
What do I need to do?
If an employee's superannuation guarantee rate was set to 10% as at 30 June 2022, it'll automatically update to 10.5% from 1 July onwards. If their rate was not set to 10% as at June 30, you'll need to manually update it.
Before processing any pays for the new payroll year, we recommend checking each employee's superannuation guarantee rate to make sure it's set correctly.
To check your super guarantee rate
You can check the super guarantee rate for each employee to make sure it's set to 10.5%
If your employees have additional superannuation contributions, we recommend checking how they're set up to see if they need changing based on this rate increase. If you're not sure about the impacts of this change on your business, check with your accounting advisor or the ATO.
- Go to the Payroll menu and choose Employees.
- Click an employee's name.
- Click the Superannuation tab.
- Under Super guarantee, make sure the Employer contribution is set to 10.5%. If it's not, update it.
- Click Save.
- Repeat for each employee.
What super rate do I use for pays that span payroll years?
If you're processing a pay that includes dates in June and July, the applicable super guarantee rate is based on the Pay on date.
- If the Pay on date is June 30 or earlier, the super guarantee rate for that pay should be 10%.
- If the Pay on date is July 1 or later, the super guarantee rate for that pay should be 10.5%.
What if I processed a pay in July using the old rate?
That's OK because super is calculated on a monthly basis, like this:
The amount of pay for the month MULTIPLIED by the current super rate MINUS super already calculated for that month.
So if you forget to change the rate before processing the first pay in July, you just need to change the rate to 10.5% and MYOB Essentials will calculate and adjust the super accrual amount in the next pay run for this same month.
Learn more about how super is calculated in MYOB Essentials.
What if I need to record a pay in the previous payroll year after updating my super rate?
If you've already updated an employee's Super guarantee rate to 10.5% and you need to process a pay for them in the previous payroll year, you'll need to change their rate back to 10%. Just follow the steps above to change their super rate.
Be aware that if you've already finalised your STP information for the payroll year, you'll first need to undo the finalisation. Learn more about Changing a pay after finalising with Single Touch Payroll.
After you've processed the pay for the previous payroll year, change the employee's super rate back to 10.5%.
What about the removal of the $450 earnings threshold?
From 1 July 2022, the Australian Government has removed the $450 per month threshold for super guarantee eligibility (that's the amount an employee can earn in a calendar month before you have to pay them super). This means you need to pay super guarantee contributions on all ordinary time earnings for pays dated 1 July 2022 or later.
Learn more about the threshold removal on the ATO website.
From 1 July 2022, you'll need to contribute super for all your eligible employees, no matter how much they earn. Employees must still satisfy other super guarantee eligibility requirements.
There's nothing you need to do in MYOB Essentials to cater for this change
The right amount of super will be calculated each pay based on the Pay on date.
If the Pay on date is:
- 30 June 2022 or earlier, the $450 minimum earnings threshold will apply
- 1 July 2022 or later, the threshold will not apply and super will calculate on the pay regardless of how much the employee has earned that month (subject to any wage payments that are exempt from super).