How to Create a Contribution Rate Rule

The process of creating a contribution rate rule is a two stage process that involves the following:

creating a contribution rate rule header
defining the contribution rate for one or more validity periods.

To define the contribution rate for a validity period, you must select the pay code group that defines the earnings on which the super contributions for the contribution rate rule will be calculated. Therefore, ensure the relevant pay code groups are configured before you attempt to create a new contribution rate rule.

To create the contribution rate rule header, follow the procedure below.

1.	Navigate to Payroll > Maintenance > Superannuation > Contribution Rate Rules. The Contribution Rate Rules Maintenance screen opens.
2.	Click Add. The Superannuation Rate Rule Entry screen opens.
3.	In the Name field, key in a unique name for the contribution rate rule. This name will be listed wherever a contribution rate rule can be selected throughout the Payroll module.
4.	In the Status field, select Released if you want the contribution rate rule to be available for use as soon as it is saved. Otherwise, leave the Pending option selected. This will allow you to save the contribution rate rule without making it available for use so that you can complete the configuration at a later stage.
5.	In the Week Ending Day field, select the day of the week that constitutes the end of a week for the purposes of this contribution rate rule. This is used for accruals that are fixed or capped on a weekly basis. For example, if the selected day is Sunday, then a week is defined as Monday - Sunday and therefore an accrual triggered by any pay items that fall between Monday and Sunday of the same calendar week contribute to the accrual or cap for that calendar week.
6.	If super contributions accrued through this contribution rate rule are to be reported as reportable employer super contributions (RESC), click RESC. Note that employer super contributions should be flagged as RESC where they represent contribution amounts that exceed the mandatory amount required to be paid under the superannuation guarantee (SG) scheme or under an applicable industrial award or agreement. A tick is displayed in the RESC field if you chose to select the option.
7.	If super contributions accrued through this contribution rate rule will not be subject to the minimum monthly earnings threshold, as defined under Payroll > Maintenance > Superannuation > Eligibility Rules, click SG Eligible Earnings Exempt. This will allow payees to accrue employer super contributions even if they do not earn enough during a month to meet the minimum earnings threshold. A tick is displayed in the SG Eligible Earnings Exempt field if you chose to select the option.
8.	If super contributions accrued through this contribution rate rule will not be subject to the maximum quarterly earnings threshold, as defined under Payroll > Maintenance > Superannuation > Eligibility Rules, click Maximum Earnings Threshold Exempt. This will allow payees to accrue employer super contributions on earnings that are above the quarterly earnings threshold. A tick is displayed in the Maximum Earnings Threshold Exempt field if you chose to select the option.

At this stage, you will need to add a contribution rate for at least one validity period before you can save the new contribution rate rule record. The process of adding a contribution rate rule differs depending on the contribution basis. To add a contribution rate rule for a validity period, follow the procedure below.

How to Add a Contribution Rate

1.	On the Contribution Rate Rule Entry screen, click Add. A new row appears in the table at the bottom of the screen.
2.	Next to the Start Date field, click the calendar button and use the calendar control to select the date on which the new contribution rate is to become effective.
3.	Next to the End Date field, click the calendar button and use the calendar control to select the date on which the new contribution rate will expire. Alternatively, skip this step if the contribution rate is to remain effective indefinitely.
4.	Using the Superannuation Contribution Rate screen, select and key in the relevant contribution rate depending on the contribution basis that is required. Contribution Basis Defines the basis on which the contribution rate is applied. This field is mandatory. The options available are as follows: - Percentage: indicates the contribution rate is based on a percentage of earnings - Fixed: indicates the contribution rate is a fixed monetary amount - Greatest Amount: indicates the contribution rate is based on a percentage of earnings or a fixed monetary amount, depending on whichever is greater. Percentage Value Defines the percentage of earnings that are to be accrued as super contributions. For example, if contributions under this contribution rate are to be accrued at a rate of 9.25% of earnings, key in 9.25 in this field. This field is available only if the contribution basis is Percentage or Greatest Amount, in which case it is mandatory to specify a percentage in this field. Pay Code Group for % Calculation Defines the pay code group that determines the earnings to which the contribution rate applies. This field is available only if the contribution basis is Percentage or Greatest Amount, in which case it mandatory to select a pay code group in this field. Fixed Value Defines the fixed amount that is to be accrued as super contributions per applicable period. The period to which the amount corresponds must be selected in the Fixed Per field (see below). This field is available only if the contribution basis is Fixed or Greatest Amount, in which case it is mandatory to specify a value in this field. Fixed Per Determines the period to which a fixed contribution amount applies. The options available are as follows: - Pay Period: indicates the fixed amount will be accrued each pay period - Week: indicates the fixed amount will be accrued each week - Day Worked: indicates the fixed amount will be accrued each day that a payee works - Hour Worked: indicates the fixed amount will be accrued each hour that a payee works. This field is available only if the contribution basis is Fixed or Greatest Amount, in which case it is mandatory to select an option in this field. Pay Code Group to Define Period (for fixed) Defines the pay code group that determines which earnings are used to indicate that a payee worked during a period of accrual. This field is available only when the contribution basis is Fixed or Greatest Amount and the fixed value is applied per day or per hour worked, in which case it is mandatory to select an option in this field. Cap Fixed At Defines the maximum amount in contributions that can be accrued during a given period. This field is available only if the contribution basis is Fixed or Greatest Amount and the fixed value is applied per day or hour worked, in which case it is mandatory to specify a value in this field. Cap Per Determines the period to which the cap value applies. The options are as follows: - Day: indicates that the cap value is a daily limit - Week: indicates that the cap value is a weekly limit - Pay Period: indicates that the cap value is a per-pay period limit. This field is available only once a value has been keyed in the Cap Fixed At field, at which point it is mandatory to select an option in this field.
5.	Click Save. The Superannuation Contribution Rate screen is saved.