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• #1000223
eddydenton
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• Total posts: 3

I am a little unsure about how super calculations are made. For example, my employee I pay a gross wage of \$3000 which should work out to \$338 tax withheld, \$285 super and therefore I would have thought the amount paid to the bank account should be \$2377. i.e. \$338 + \$285 + \$2377= \$3000. I paid my employee a normal monthly wage of \$2377 to their bank + \$285 to their super fund but my accounting software (Xero) is saying that I owe \$285 in wages. My understanding is that super payment is 9.5% OF the wages but this seems to be calculating it as 9.5% ON TOP OF the wages. It seem to be calculating it as though I need to pay the employee \$2662 (i.e. \$2377 + \$285) and then an additional \$285 on top. Can someone confirm what the correct calculation of super is?

#1223443
Thrive Promotional
Member
• Total posts: 146

Hello Eddy

Firstly I’m not an accountant … but I do use Xero.

Firstly, in case you do not use, this is really helpful for working out the various payments and splits: http://www.paycalculator.com.au

Someone savvy will come along and help and clarify .. as far as I know from what you’ve advised:

If you are paying \$3000 + super:

Employee is paid: \$2662.00
Tax: \$278.00
Super (paid to employees super fund when due at BAS time): \$285.00

Or

If you are paying \$3000 inclusive of the super, then I would think the gross wage is actually \$2715.00 + super:

Employee is paid: \$2438.00
Tax: \$223.03
Super (paid to employees super fund when due at BAS time): \$257.93

Gulp, I hope I haven’t confused further !

All the best
Morgan

#1223444
bb1
Participant
• Total posts: 4,472

This is an area where you are liable for penalties if you get it wrong, plus a very grumpy employee. Talk to an accountant

#1223445
Thrive Promotional
Member
• Total posts: 146

Yes Bert … absolutely correct .. this is a forum topic so all information is ‘general in nature’ … agree, anyone seeking answers to these types of queries should always ask their own professional

#1223446
Paul – FS Concierge
Moderator
• Total posts: 3,119

To be fair, the calculation is simple.

Where people can get mixed up is making an offer of employment, especially if it is verbal.

This can be somewhat of a catastrophe because the correct payment should be made for each and every pay period.

As well, expectations are strongest in the beginning where employees look to bosses to make good on their promises.

It is always best to quote payment as \$X+Super.

That way, the calculation is transparent, simple and deliverable. Everybody is happy.

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