Managing an employee's superannuation details
Employees have access to all their financial information in their Employee App, where they can view and edit those details, including their superannuation.
Occasionally, an admin user might need to make the changes on an employee's behalf. In this case, admin users can update superannuation details on behalf of an employee from the Employee Profile.
In this article, we will cover:
- Updating an employee's superannuation details on their behalf.
- Maximum Superannuation Guarantee contribution cap.
- Applying Salary Sacrifice to an Employee Profile
- How to enable Employer Additional Superannuation contributions
- Superannuation Reporting & FAQs
Permission Reminder: Admins must have the permission 'Manage Employee Financial Details' enabled in their permission settings to make changes in the financial section of the Employee Profile. Please have a look at our Permissions article for more information.
Updating employee superannuation details
You may find that an employee's superannuation details require updating, and the employee cannot do so in their Employee App. As an admin, you may have access to make these changes for your employees.
Use cases for why an admin would action this:
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- Employee fund details are incorrect, and your superannuation payments are due.
- Setting an Employer additional superannuation amount.
- Updating the Maximum Superannuation guarantee cap.
- Applying Salary Sacrifice
- The employee is underage or not technologically savvy.
General responsibilities for the employees to update in the Employee App:
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- Ensuring fund details are up to date and correct.
- Adding Employee additional superannuation amount (post-tax).
- Applying Salary Sacrifice amount (pre-tax) - this will need to be enabled in Superannuation Settings.
To update an employee's superannuation details:
- In the quick menu, navigate to People > Approved People and locate the desired employee, or search for the employee via the search menu.
- From the employee's profile, navigate to the Financial icon > Superannuation and select 'Edit' to update the employee's details.
- Select 'Employees Fund' and type to search for the correct superannuation fund.
- Once the fund has been selected, enter the employee's member number in the "Superannuation member number" field.
- To save your changes, select the green tick.
Once updated, your platform will send an email to the employee to inform them of the changes made.
Under the superannuation guarantee, employers must pay contributions of a percentage, determined by the Australian Taxation Office (ATO), of an employee's ordinary time earnings to all eligible employees.
The ATO has determined a maximum limit on superannuation paid to any employees by an employer, which is calculated from the individual's earning base for each quarter of any financial year.
This cap is applied automatically to all employee profiles in your platform. As an admin, you have access to manage this by the individual employee profile. Please be aware that by removing the cap, superannuation will be paid on all ordinary time earnings after exceeding the maximum quarterly limit.
For more information regarding maximum superannuation guarantee contributions, please refer to the ATO article here.
To update the Superannuation guarantee contribution cap:
- Navigate to People > Approved People to locate your desired employee to enter their profile.
- Locate the Financial icon, then select 'Superannuation' to expand the employee's superannuation details.
- Select the 'Edit' option to edit the employee's details.
- Update the 'Ignore Superannuation Guarantee contribution cap' field from 'No' to 'Yes'.
- To save your changes, select the green tick.
If an employee has hit the maximum superannuation guarantee cap for the quarter, this will be flagged on the Payroll > Pay page for admins, along with a note added onto the payslip for the employee to see.
Displayed to admins:
Displayed to employees:
Superannuation Salary Sacrifice
Salary Sacrifice is an arrangement between an employee and employer to make additional superannuation contributions from the employee's pre-tax wage each pay cycle.
Superannuation Salary Sacrifice can be set up in 2 ways:
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- By employees within their Employee App or,
- By Admin users on the employee's behalf in the Admin portal.
To set up Superannuation Salary Sacrifice in the Admin portal:
- Navigate to People > Approved People to locate your desired employee to enter their profile.
- Locate the Financial icon, and expand on 'Superannuation' to expand the employee's superannuation details.
- Within the financial section, expand on 'Superannuation' and select the 'Edit' option to update the employee's details.
- Locate the Super salary sacrifice settings, and enter as a % or $ amount. This will be the salary sacrificed amount per payslip (frequency). This is a pre-tax amount.
- For example, if you entered $50 and the pay cycle was fortnightly, then $50 would be salary sacrificed each fortnight.
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Select the green tick to save your changes.
Once the Salary Sacrifice percentage/amount has been specified in the relevant Employee Profile the percentage/amount will appear on the employee's next draft payslip. A payslip edit may be required for any current draft payslips.
Your employees may prefer to set up their own Salary Sacrifice preferences, if so, they can do this in the foundU Employee App via View Profile > Edit financial details.
There are 2 options available:
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- Salary sacrifice - Generally taken out of gross (pre-tax) pay. For an employee to be able to set this up, this will need to be enabled in Superannuation Settings.
- Additional personal contributions - Generally taken out of the net (post-tax) pay.
For instructions on how employees can set up their Salary Sacrifice preference, check out our Employee guide.
Employer additional superannuation contributions
Some employers may elect to pay additional superannuation contributions to their employees on top of the set guarantee.
Some use cases for setting up Employer additional contributions are:
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- Contracted salary packaging.
- Agreement to pay annual bonuses to superannuation.
To use this feature the 'Allow employer additional super contributions' setting first needs to be enabled in your platform.
Permission Reminder: Admins must have 'Access Superannuation Settings' enabled in their permissions to be able to action the following steps.
To enable the 'Allow employer additional super contributions' setting:
- Navigate to the main menu > Payroll Settings > Superannuation.
- Toggle on the 'Allow employer additional super contributions' setting and select Save Settings.
Additional superannuation contributions on an employee's profile
Once you have enabled the 'Allow employer additional super contributions' setting, you can set this on the relevant employee profiles.
Each employee profile will now display an 'Employer additional super contributions field' within the Financial > Superannuation area.
To set employer additional superannuation contributions on an individual employee's profile:
- Navigate to People > Approved People to locate your desired employee to enter their profile.
- Select the Financial icon, then select 'Superannuation' to expand the employee's superannuation details.
- Select the 'Edit' option to edit the employee's details.
- Enter the relevant employer additional contribution amount; select from the following options:
- None - There is no Employer additional superannuation contribution.
- Reportable employer super contribution (RESC).
- Non-reportable contribution.
- When choosing RESC or non-reportable contribution, specify the contribution amount (in dollars or as a percentage).
- Select the green tick to save your changes.
In some circumstances, during payroll, you may need to edit the employee's payslip and update the Employer Additional Super Contribution amount.
To do this, you will need to have 'Allow employer additional super contributions' enabled in Superannuation settings, please see the steps outlined in the accordion above on how to do that.
Once this setting is enabled, the relevant field in the edit screen of the payslip will be unlocked, allowing you to edit and display the 'Employer Additional Super Contribution' separately below the summary area of the payslip.
Please note: If 'Employer Additional Superannuation Contribution' is set to 'None' on the employee profile, any edits to this field in the payslip will not not be added to the employees superannuation contribution and will not be paid. Please enable it in the employee profile before making any payslip changes.
Please note: The YTD total will be the year-to-date for all superannuation contributions.
Superannuation Reporting & FAQs
There are multiple options for reports available to breakdown your Superannuation guarantee, Salary Sacrifice, Employee personal superannuation contributions, and Employer additional super contributions.
The Advanced Payroll Activity Report is the best for post-payroll reporting, with there being an option to split superannuation contributions paid by type.
See our Payroll Activity Report (Standard and Advanced) guide for more information on reporting on Superannuation amounts.
Will enabling the Maximum Superannuation Contribution Cap stop other contributions from being paid?
The Contribution Cap will only cap on Superanuation Guarantee payments, all other contribution types will still be paid to the employees superannuation fund as normal.
If I update an employee's fund details on their profile, will this update the existing pending Superannuation batches?
Yes, if an admin updates an employee's Superfund details, it will update existing pending batches. If the employee updates the fund details, it will only take effect for future Superannuation batches.