Staying compliant with super guarantee rate increases

If the Calculation basis in your super guarantee pay item is set up similar to this, the new option Minimum required rate will be automatically selected for you when you process your first pay in July 2022.

You can select the new Minimum required rate option now if you like, which means 10% super will be calculated up until 1 July, then it'll automatically calculate 10.5% from 1 July onwards.

1. Go to the Payroll menu and choose Pay items.
2. Click the Superannuation tab.
3. Click to open the Superannuation guarantee pay item.
4. For the Calculation basis, choose Minimum required rate to pay the mandatory minimum super guarantee contributions for the current, and future, payroll years.
5. Click Save to save your changes.

If the Calculation basis in your super guarantee pay item is NOT set up similar to this, it means you're paying a non-standard amount for your super guarantee contributions.

You can choose to keep doing so (providing you meet your super obligations), or you can select the new Minimum required rate option to simplify your super calculations. 

1. Go to the Payroll menu and choose Pay items.
2. Click the Superannuation tab.
3. Click to open the Superannuation guarantee pay item.
4. (Recommended) For the Calculation basis, choose Minimum required rate to pay the mandatory minimum super guarantee contributions for the current, and future, payroll years.
5. If you're not paying the minimum super guarantee contributions for your employees, choose a different Calculation basis. If unsure, check with your accounting advisor or the ATO. Check your super obligations.
   
   • Select User entered amount per pay if you want to enter the super amount each time you do a pay run.
   • Select Equals a percentage of wages and enter the super rate to be calculated and what it should be calculated on, e.g. Gross Wages.

   • Select Equals dollars per pay period if you want to pay a set amount of super per pay period.

     Using one of the above 3 options means you'll need to manually manage any future super guarantee rate increases.
6. Click Save to save your changes. 

What super rate do I use for pays that span payroll years?

If you've selected the new option in your super guarantee pay item, the applicable rate will be used based on the Date of payment in the pay run.

For example:

• If the Date of payment is June 30 or earlier, a super guarantee rate of 10% will apply.
• If the Date of payment is July 1 or later, a super guarantee rate of 10.5% will apply.

This means if the pay period includes dates in June and July, the Date of payment will determine which super rate will be applied.