When you pay an employee, the correct amount of superannuation stipulated by the award will be calculated automatically:
- If 9.5% of the gross wages is less than $95.00, then $95.00 of superannuation will be added to the employee's pay. This is shown in Example 1.
- If 9.5% of the gross wages is greater than $95.00, then 9.5% of the gross wage will be calculated as superannuation. This is shown in Example 2.
Pay where 9.5% of gross wages is less than the minimum for the award and the minimum is still added to the pay.
As you can see, the employee has earned $975 gross wages on this pay. This would normally equal $92.62 superannuation. As a result of the award, they are being given a flat rate of $95.00.
Pay where 9.5% of gross wages is more than the award minimum. 9.5% of the gross wages is added to the pay as superannuation.
You can see that gross wages are $1200. The Building Award Super Flat $ is always being used to generate superannuation on each pay, in this example $95.00. When the gross wages being paid exceed the flat rate of superannuation (equivalent to 9.5%), the Building Award Super or Greater category is being activated and it is generating the additional super calculation that is required. In this example, an additional $19.00 is calculated.
The software has calculated the required values for superannuation.
9.5% of $1200=$114.00.
This is the required amount of superannuation on the pay.
$95.00 + $19.00=$114.00.
This is the calculated amount of superannuation on the pay.