Enhancements to Greatest Amount Superannuation Accruals

Description

Changes have now been made to the way that the system calculates superannuation accruals, and attributes the accruals to job orders, where the accrual is based on a Greatest Amount contribution basis.

If multiple jobs are subject to the same superannuation contribution rate rule, which has a Greatest Amount contribution basis, the system now groups the superable earnings from those jobs for the relevant period to determine the total superannuation accrual across those jobs for the period instead of considering each job individually. That amount is then split proportionally across the jobs based on the percentage of superable earnings that were earned in each of those jobs during the relevant period.

For example, consider a scenario where a payee earns $800.00 in superable earnings in one job and $650.00 in superable earnings in another job during the same period. Both jobs are subject to the same superannuation contribution rate rule, whereby the contribution basis of the rule is Greatest Amount. The contribution rate rule stipulates an accrual per period of whichever of the following amounts is the greatest:

9.5% of superable earnings
a fixed amount of $145.00.

In this scenario, the system does the following to calculate the superannuation accrual amount and to attribute the accrual to jobs:

Step	Process	Result
1.	Combine the superable earnings from both jobs for the period.	$800.00 + $650.00 = $1,450.00
2.	Multiple the result of step 1 by the percentage value that is defined on the contribution rate rule.	9.5% x $1,450.00 = $137.75
3.	Compare the result of step two with the fixed value that is defined on the contribution rate rule. The greater of these two values is the total amount of superannuation that is to be accrued across both jobs for the period.	$145.00
4.	Determine the percentage of the total superable earnings that each job contributed towards the accrual amount calculated at step 3.	Job 1 - ($800.00 x 100)/$1,450.00) = 55% Job 2 - ($650.00 x 100)/$1,450.00) = 45%
5.	Proportionally split the total accrual amount across both jobs.	Job 1 - 55% x $145.00 = $79.75 Job 2 - 45% x $145.00 = $65.25

Benefits

This enhancement prevents over accrual of superannuation in scenarios where a payee accrues superannuation on a Greatest Amount contribution basis across multiple jobs during the same period. In turn, this prevents the need to manually adjust the superannuation accrual amounts during the pay batch process to negate the over accrual.

Configuration

No configuration required.