How to Setup a Super Fund and Apply It to an Employee

Important! If this is the first Super Fund that is being setup, you must complete all steps. Otherwise start at Step 3.

Step

Details

Task

1

Enter superannuation parameters. Use program Payroll > Setup Information > Superannuation Funds on the 'Super Parameters' tab and enter the minimum monthly and yearly earnings and SGC % amount. This needs to be done once only.

Complete

2

Check component types. Use program Payroll > Setup Information > Superannuation Funds on the 'Component Types' tab.
A component is simply a method of contribution to a superannuation fund.
You will need to create a component for each form of contribution made by the employer or employee to the fund: SGC, employer extra, salary sacrifice, employee after tax etc.
The superannuation industry has defined components by type and these standard types have been pre-loaded for you. Whilst there are a number of standard types we recommend that you categorise your components using the following key types:

Component Type	Component Description
SA	SG Contributions (compulsory)
EA	Employer Additional
SS	Salary Sacrifice
MV	Member Voluntary

Complete

3

Setup an accrual code for each employer component offered with the superannuation fund using program Payroll > Setup Information > Payroll Setup on the 'Accrual Codes' tab.

Accrual Code Number	This has to be a 3 character unique code. (For new funds consider using this code as the fund code as well)
Description	It is a good idea to include the Fund name and 'SGC' or 'Employee Extra' in the description.
Abbreviation	A shortened description – maximum 10 characters.
Unit of Measure	$
GL Account - Debit	General Ledger expense account (use the GL mask if required)
GL Account - Credit	GL clearing account for contributions. (You may want to have a separate GL account for each fund to help with reconciliation). Use this same account as the default expense account on the supplier record.

Accrual Parameter Options

Print on Pay Envelopes	Checked
Request History Details	Unchecked
Timesheet Entry Allowed	Checked

Complete

4

Setup a paycode for each employee component offered with the superannuation fund using program Payroll > Setup Information > Payroll Setup on the 'Paycodes' tab.

The following setups are required for salary sacrifice contributions:

Paycode Number	Normally a code in the range 050-099.
Group	Earnings (these are flagged as negative earnings).
Description	It is a good idea to include the Fund name and 'Salary Sacrifice' in the description.
Abbreviation	A shortened description – maximum 10 characters.
Tax Equation Flag	B - Before Tax – Subject to PAYG tax.
Multiplier	This must be -1.
Tax at Marginal Rate	Unchecked.
Rate Code	For this type of paycode you need to select: '0 = Rate Amount is manually entered'.
General Ledger Account	GL clearing account for contributions. (You may want to have a separate GL account for each fund to help with reconciliation). Use this same account as the default expense account on the supplier record.
Timesheet Entry Allowed	Checked.

Paycode Parameter Options

Print on Pay Envelopes	Checked
Included in Superannuation Gross	Unchecked
Accrue Leave on Hours/Days Paid	Unchecked
Attracts Annual Leave Loading	Unchecked
Request History Details	Unchecked
Banking Deduction	Unchecked
Include Hours/Days in Review Trigger	Unchecked
Apply Exception Checking	Unchecked

The second optional paycode that you may need for this super fund is for member voluntary contributions (after tax payments). The setup for this type of paycode would be similar to above except:

The code would normally be in the 500-599 range and belongs to the 'Deductions' group.
The 'Tax Equation Flag' should be 'A – After Tax Deduction'.

Complete

5

Enter the super fund. Use program Payroll > Setup Information > Superannuation Funds on the 'Super Funds' tab.

Complete

6

Enter the component(s) for the super fund. Use program Payroll > Setup Information > Superannuation Funds on the 'Super Funds' tab.

Click 'Components' to open the 'Super Fund Components' screen then click the 'New Component' button.

Components are defined as being of a type eg “SA” (SG Contribution). Each component is linked to either an accrual code (for employer contributions) or a paycode (employee contributions) and then based on a calculation method, either a percentage or a flat dollar amount.

Where contributions for the same component type (eg. “SS” Salary Sacrifice) can be made as a percentage or as a dollar amount, then you will need to setup 2 components linked to the same contribution code (accrual code or paycode)

When components are added they are automatically given a sequential component number starting at 1.

For ease of data entry, we suggest you add components in the following order:

Employer SG Contributions – percentage
Salary Sacrifice – percentage
Salary Sacrifice – dollar based
Employer Extra – percentage
Employer Extra – dollar
Member's Voluntary – percentage (if required)
Member's Voluntary – dollar based (if required)

It is recommended that you add the first five components to every fund even if you do not currently have anyone making employer extra contributions. This provides consistency when adding super details to the employee record. As the Member Voluntary contributions are less common, only add them where needed.

Complete

7

Add employee superannuation details to the employee record. Use program Payroll > Employee Information > Employees on the 'Super' tab.

Multiple components may be added to the employee record. Eg: The employee has a SGC and Salary Sacrifice component.

Important! You will not be able to delete a Component if the employee has transactions for it. You can make it inactive to stop future contributions.

Complete