What happens when the Superannuation Guarantee contribution changes
Xero handles superannuation guarantee (SG) contribution rate increases and updates them for you. You can also manually update this in an employee’s pay template if necessary.
SG contribution increases
You need to pay your employees the new minimum SG contribution.
More information from the ATO website:
Updates to superannuation in Xero
We're making updates to Xero to automatically apply the correct rate of superannuation for your employees.
Like tax tables, we will store the SG rates and retrieve the right percentage based on the payment date of your pay runs.
No matter how the rates change over the years, we'll always have Xero up to date with the right percentage.
Automatic updates to existing employees
The Statutory Rate option will apply automatically to your employees' pay templates and superannuation lines if:
- the contribution type = SG Contribution
- the calculation type = Percentage of Earnings
- the percentage applied on the employee's pay template is 9.00%.
New employees' pay templates will default to new statutory rate
When you set up a new employee's pay template, any superannuation lines you add will default to the statutory rate option.
You can change these default selections to apply them to the employee's pay template.
Check the SG rate on your existing employees' pays
The SG contribution will show where the Statutory Rate has been applied to employees. Whenever there is an update, Xero's super contribution will change accordingly.
What to check if the right rate isn't showing
If, when checking your employees' pays, you don't see the right superannuation rate for the year, it could be because:
- the payment date of the pay run is not correct
- you have set up your superannuation lines differently, so the automatic update did not occur
- click the superannuation fund
- check the type is SG contribution
- check the calculation type is Statutory Rate.
the payment date of the pay run determines the superannuation percentage to use when Statutory Rate applies to the superannuation line
check the superannuation line in the employee's pay template:
Manually update an employee's pay template
To update an employee's pay template to use the Statutory Rate option, do the following.
- On the Payroll menu, click Employees.
- Select the employee.
- Select the Pay Template tab.
- Open the superannuation line.
- Check and select:
- Type = SG Contribution
- Calculation Type = Statutory Rate.
Once applied and saved, you will see 'Statutory Rate' against the payment line.