Removal of employee super threshold from 1 July 2022

This article applies to users with payroll in Australia only. 

From 1 July 2022, employers will be required to make super guarantee contributions to their eligible employees regardless of how much the employee is paid each month.

This change replaces the current $450 minimum monthly salary and wage threshold to pay super guarantee. More information on the amendment can be found here.

What's changing in Roubler?

The main difference from 1 July 2022 is, by default, there will be no super threshold (ie $0) applied when adding a new employee.

Will existing employee settings be affected?

Some existing employee settings will be affected, as explained below: 

The default super threshold setting

This will still be located in the employee's Pay Run Defaults screen (Management > Employees > Edit)  and will display as follows:

When the 'Apply a threshold amount' checkbox is not ticked, it shows the employee does not have a super threshold amount and will be paid super guarantee contributions on all OTE earnings regardless of the employee's total monthly earnings amount.

For example, if an employee was paid a total of $400 gross in May 2022, there would be no super payable on this amount (because the employee did not make enough to reach the minimum $450 threshold).

From July 2022 and onwards, if the employee earned $400 gross (OTE) in the month then they would be paid super on that total amount (because there is now no minimum monthly eligibility threshold). 

When will the new updated super threshold NOT change?

There is two circumstances where the new updated super threshold will not change: 

1. If the super threshold has been manually overridden prior to July 2022, the system will not default change the threshold to $0. However, if the override was done prior to July 2022 and the override was set to $0 then it will default to the new look as above.
   
   
2. If the employee is on the Hospitality or Restaurant Award where the super threshold is actually $350, the system will not automatically update the employee's super setting. Instead, an award update will be released and once the client has performed the award update, the super threshold will be removed. 
   
   *It's important to note the client should not do an award update until the first full pay period of the new financial year.

If you have any further questions on this, please do not hesitate to reach out to our support teams.