Known issue 2014.02 (resolved): Superannuation guarantee is not being calculated on lieu of notice payments in a termination pay (Australia)

The following issue has been identified and subsequently replicated by MYOB Exo Employer Services Support in Exo Payroll version 2014.02 for Australia.

Issue

Support has confirmed that when an employee is being paid a Lieu of Notice payment in a termination pay, the Lieu of Notice payment does not have any Superannuation Guarantee amount calculated on it as it is being included in the standard Redundancy or ETP allowances appearing in the pay.

The ATO mentions that Lieu of Notice payments can be included in Genuine Redundancy payments and that Lieu of Notice payments are liable for Superannuation Guarantee calculations.

Workaround

When processing a termination pay that contains Lieu of Notice payments, the Payroll will put the Redundancy and/or ETP amounts through in non-taxable allowances that do not have the Superannuation liability item ticked.

For Superannuation Guarantee to be calculated on the Lieu of Notice payments, create new allowances that are based on the default allowances created by the Payroll. Also ensure that the Superannuation item has been ticked in the Liabilities button.

If the Liabilities button is not available then make the allowance Taxable so that the Liabilities button becomes available, tick the Superannuation liability then make the allowance Non-Taxable.

Resolution

This issue has been progressed through to Product Development via parent ticket 19293621345 and has been resolved in version 2014.04

Need more help? You can open the online help by pressing F1 on your keyboard while in your software.

You can also find more help resources on the MYOB Exo Employer Services Education Centre for Australia or New Zealand.