Superannuation Funds are the arrangements in place to enable residents in Australia to accumulate funds to provide them with income in retirement. Superannuation funds are partly compulsory, and is further encouraged by the government to contribute personally, where it is supported with tax benefits.
The government has set minimum standards for contributions for employees as well as for the management of superannuation funds. It is required for employers to make superannuation contributions for their employees on top of the employees’ wages or salaries.
For most people, superannuation funds begins when you start work and your employer starts paying it for you.
To create a superannuation fund, click on Maintenance…Superannuation Funds. The following screen will display when you create a superannuation fund for the first time:
|Business||Select the business from the drop down where you will create the superannuation fund in.|
|Fund Type|| Select the fund type that the superannuation belongs to:
* Regulated fund; or
* Self-Managed Super Fund (SMSF)
|Fund Name/USI||If you have a regulated fund, enter the name of the government superannuation fund in this field and select the correct fund.|
|Name||If you have selected the SMSF option, enter the name of the superannuation fund. If you selected a Regulated fund, this field will automatically be updated.|
|USI||Enter the USI number for the superannuation fund. This will be the number that you receive when registering with the fund.|
|Australian Business Number (ABN)||Enter the Australian Business Number (ABN) for this superannuation business.|
|Endpoint Service Address||Enter the Endpoint Service Web Address for this superannuation fund.|
|Super Guarantee Contribution (SGC)||Check this check box if this superannuation fund forms part of the Super Guarantee Contribution for an employee. This will enable the fund to be added under the Superannuation Fund accordion on the Employee Details view.|
Click on the Save button to create the Superannuation Fund.
When you created the SGC Superannuation Fund, you are able to add it to the employee details screen in the Superannuation Fund accordion:
Note that the Superannuation Fund accordion on the employee module is purely for SGC funds payable by the employer to the employee. If the employee would like to contribute personally to their respective Superannuation fund(s) as a before or after tax deduction, you will have to create before or after tax deduction pay component for the fund(s).
All funds created for a business will be in the Superannuation Fund drop down list, when the Superannuation Contribution check has been checked.
When the pay component has been created, you can select it on the Pay Run view when processing pay runs for the respective employees.