- Created by admin, last modified by AdrianC on Apr 11, 2016
https://help.myob.com/wiki/x/4Aec
ANSWER ID:9148
AccountEdge Pro and Network Edition, Australia only
In some Australian states, WorkCover premiums are calculated on both gross wages and superannuation. This page explains how to factor the superannuation into the calculation of WorkCover.
WorkCover premiums in South Australia are calculated as a percentage of gross wages plus superannuation. Because Employer Expense categories do not include superannuation, you will create an additional employer expense category to separately calculate the WorkCover attributable to gross wages and that attributable to superannuation.
Setting up the required payroll categories
The following steps describes how to create the payroll categories which will allow you to use the applicable payroll category for WorkCover payments. This involves creating a payroll category for WorkCover, and a payroll category for WorkCover on superannuation.
- Go to the Payroll command centre and click Payroll Categories.
- Click the Expenses tab.
- If there is an existing WorkCover category, click the zoom arrow next to this category. If there isn't an existing WorkCover category, click New. The Employer Expense Information window is displayed.
- Name the category WorkCover on Gross Wages.
- Select your WorkCover or Employer Expense account as the Linked Expense Account.
- Select your WorkCover Payable liability account as the Linked Liability Account.
- Set the Calculation Basis option to Equals XX Percent of Gross Wages. The value entered in the percentage field needs to be your WorkCover Levy Rate. In this example it is 3%.
- Set the Limit option to No Limit.
- Set the Threshold to $0.00. The Employer Expense Information window should look similar the following example:
- Click Employee. The Linked Employees window is displayed.
- Select the relevant employees.
- Click OK to the Linked Employees window and then click OK again at the Employer Expense Information window.
- Go to the Payroll command centre and click Payroll Categories.
- Click the Expenses tab.
- Click New. The Employer Expense Information window is displayed.
- Name the category WorkCover on Superannuation.
- Select your WorkCover expense account as the Linked Expense Account.
- Select your WorkCover Payable liability account as the Linked Liability Account.
- Set the Calculation Basis option to Equals XX Percent of Gross Wages. The value entered in the percentage field is calculated as follows: Superannuation Rate X WorkCover Rate. In this example we'll use 9.5% X 3%=0.095 X 0.03=0.00285=0.285%.
- Enter the same wages Threshold as specified for your superannuation. This means WorkCover will not be calculated on superannuation unless the employee's wages reach or exceed this threshold in a calendar month. The Employer Expense Information window should look similar to the following example:
- Click Employee. The Linked Employees window is displayed.
- Select the relevant employees.
- Click OK to the Linked Employees window and then click OK again at the Employer Expense Information window.