SGC Rules

This window is used to maintain rates and qualifying criteria rules that are to be used when calculating superannuation payments, whether or not an employee is eligible for super, to link to another approved non-contributory super funds, etc., with each rule identified by a unique SGC code.

Prerequisites

  • Read about SGC

Rules and Guidelines

  • Multiple sets of Superannuation Guarantee Contribution rules can be setup.
  • If the Date of Birth of the employee has not been entered using Personal Details they will not be included in the SGC processing.
  • Refer to the current government legislation for information pertaining to Super Guarantee Contribution Rules.
  • When the Position 23 of Program Control PAY29 Superannuation Guarantee Report is set to N or Blank, the calculation of SG for fortnightly U18s who worked 30 hours or more each week will be totalled and divided by two. When Position 23 is set to Y, the calculation will be on a weekly basis using the Costing Date in Entry via Single Screen.

  • If you want to create a new SGC Rule and base it on all of the configuration of a current SGC Rule, please use the Copy SGC Rule Config screen. This allows you to include the SGC S&W, SGC OTE and SGC Super Links. If you choose to clone, you will only clone the SGC Rule Code and not the SGC S&W, SGC OTE and SGC Super Links.

Field Information

This is a two-character code that represents the SGC Rule.

This is the description of the SGC Rule.

This refers to the contribution percentage that applies to this rule.

This refers to the Allowance/ Deduction code to be used to post any shortfall in contributions for this rule.

This is the Recipient for the selected SGC Rules Code, if applicable.

Any shortfall transactions that has a Recipient ID, whether manually entered via Time Card Entry, Prepay/Rebank

This is the minimum age that applies to SGC.

  • SGC contributions may apply to employees under the age of 18 and who work for 30 hours or more per week.

  • When an employee is younger than the indicated minimum age, SGC payments are not calculated.

 

This is the maximum age that applies to SGC.

When an employee is older than the indicated maximum age, SGC payments are not calculated.

This is the minimum dollar amount of earnings.

  • Preceda can calculate the SGC for this value on Weekly, Fortnightly, and Monthly employees. Please refer to the ATO website for more details.

  • When an employee's Ordinary Time Earnings (OTE) for the month is below the indicated value, SGC payments are not calculated.

 

This is the minimum number of hours that apply to employees under 18 years old.

  • In order to apply the SGC calculation for employees under 18 years old, this field must be set to a minimum of 30.00 hours per week.
  • If a fortnightly U18 works for 30 or more hours in any week, the SGC will be calculated on that week. However, no SGC will be calculated if 30 or more hours were not worked per week .

  • Preceda can calculate the SGC for this value on Weekly, Fortnightly, and Monthly employees. Please refer to the ATO website for more details.

 

This refers to the number of weeks before an employee becomes eligible for SGC. Currently, there is no eligibility period set by the Government. Please refer to the ATO website for more details.

This refers to the value supplied annually by the ATO and is used for capping SGC calculations.

When an employee is paid more in a quarter (3 months) than is defined in this field, SGC payments are not calculated on any amount paid over the maximum earnings base value.

This refers to the date that the maximum earnings base becomes effective. This is usually the first day of the financial year.

Please refer to the ATO website for more details.

This field determines whether the SGC calculation is performed in:

  • M (Each Month) where Processes within the Payroll > Superannuation Processing > SGC folder will be run, after all payruns for the month have been completed.
  • P (Each Pay) where SGC calculations are automatically processed in the normal payrun.

In Preceda, non-contributory superannuation contributions can be calculated either each pay using cumulative values for the calendar month or monthly on the last pay day within the month, depending on business requirements. A flag on the Payrun Header will initiate super calculations based on the SGC rules.

This is the quarterly maximum $ amount of superannuation that can be paid by the company on behalf of the employee.

The Maximum Super Payable field is calculated via:

  • Quarterly Max Earning Base x Required Contribution % / 100

    (51,620 x 9.5 / 100 = 4,903.90)

Super will be payable until it reaches the Maximum Super Payable, and stops when the end of the quarter is reached.