Guide to Understanding Superannuation Configuration in SAP Payroll [Australia]
Superannuation or simply, super, is a compulsory contributions to all employees from an employer where the employee earns more than $450 per month and is above 18 years of age.
These super guarantee contributions must be a minimum amount based on the current super guarantee rate of the employee’s ordinary earnings, up to the ‘maximum contribution base’. Super guarantee rate for the year of 1 July 2021 to 30 June 2022 is 10%. That means, 10% of the ordinary time earnings of an employee has to be contributed by employer towards their super contributions.
The maximum super contribution base is used to determine the maximum limit on any individual employee’s earnings base for each quarter of any financial year. Employers do not have to provide the minimum support for the part of earnings above this limit. For the income year 2021-22 the maximum super contributions base per quarter is $58,920.
Master Data for Superannuation in SAP
The info type 0220 is used to store the superannuation details for an employee in the SAP system. This info type is processed during payroll to create the contributions for employees as applicable.
Subtypes of IT 0220
The sub types for the IT 0220 is picked from the table T591A. Each of these funds have a time constraint type 2 which means that there can be only one record in a particular time period and overlapping entries are not allowed. However, time gaps between two records is permitted.
SGC Checkbox in IT 0220
In the superannuation info type, when the user selects a SGC super fund, the system automatically ticks the checkbox for SGC. This information is stored in the T5QSF table where we mention if a super fund is either SGC or non – SGC fund. This is done by using the SGC fund checkbox in the specific fund defined in the table.
Membership number and Exclusion flag
The membership number assigned by the super fund to the employee can also be specified in this info type. There is a exclusion flag beside the membership number in this info type which when used will exclude the employee from superannuation calculations in payroll.
Super Period Salary in IT 0220
This panel in the IT 0220 dictates how the salary amount field will behave and impact the superannuation calculations for the employee. Normally, in case this section is not filled in, the ordinary time earnings are taken into account for calculation of the super contributions.
There is a salary amount field in the info type along with a salary usage checkbox alongside it in the IT 0220. When the following combinations are chosen, the system behavior is as mentioned in the outcome column of the below table:
|Salary Amount||Salary Usage||Outcome in Payroll|
|Entered||Checked||System ignores the OTE and uses the amount specified in the salary amount field instead.|
|Not Entered||Checked||System ignores the OTE and uses the amount specified in the field of superannuation defined salary in the view V_T5QSS where the amount can be specified as per the payscale type, payscale area and payscale group.|
|Entered||Not Checked||system ignores the amount specified in the salary amount field and proceeds with the OTE for calculation|
The prorata field can be used in order to prorate the salary amount specified in the IT 0220. The factoring wage type /801 to /809 are available for prorating the superannuation salary amount.
Date Joined Fund, Medical Class & Reason Code fields
These fields are optional and can be specified if the employee provides the information. The date joined fund is the date when the employee joined the mentioned super fund. Medical class mentions the medical classification in the case where the employee had to undergo a medical exam – these codes are derived from the backend view V_T578Y – Examination results. The reason code is used to specify why an employee joined a fund – these codes are available in the view V_T530F.
Company Contribution Details & Employee Contribution Details
The default percentages entered in the IT 0220 for company / employee contributions overrides the percentages and rules set in the views V_T5QSR (Fund rules) and V_T5QSF (Fund details)
Superannuation Fund Details
Fund details can be mentioned in this section by on the choice of fund of the employee. The fund codes are uploaded using the program RPUSWCQ0 into the table T5QSC.
Calculation of super in SAP payroll – Australia
The calculation of the superannuation in Australia proceeds on the basis of one of the three options:
a) fixed dollar amount
b) percentage of the super salary amount in IT 0220
c) percentage of the ordinary time earnings (OTE)
The ordinary time earnings for an employee are created in the SAP system using the cumulation classes based on the wage types required for the contribution calculations.
Table for superannuation fund details – T5QSF
This table consists of the super fund details. The checkbox for SGC Fund tells the system if the fund being described SGC or non – SGC. Company and employee default contributions can be maintained for the fund code. The contribution percentages entered in IT 0220 will, however, override the inputs in this table.
Section 1: Wage types
The section for wage types is used to populate the deduction components that will be used to perform the calculations and generate the contributions for company as well as employee. The ordinary time earnings wage type is a cumulation wage type that is used to calculate the contributions. The wages and salary wage type (WSE) is used only for the SGC funds where it is used to check the eligibility for the generation of the contribution as per the monthly earnings of the employee.
Section 2: Company contributions
In the section for company contributions, you can specify the proration factor and the minimum and maximum company contributions. In case the contributions during payroll run either fall behind the minimum or exceed over the maximum, they will be defaulted to the values mentioned in these boxes.
Section 3: Retrospective Delta Wage Types
Before we understand what is to be maintained in this section, we will need to understand how superannuation calculations work in payroll run when retrospective changes to OTE/ WSE wage types are observed and in what scenarios therefore, we will need to maintain this section.
The function QSUEA in the monthly factoring schema QAL1 will check the retro differences between the OTE and WSE wage types maintained in the T5SQF table for the particular super fund and create the DT table for the SUPER function to use in the QSUP sub schema where the contributions will be generated.
The standard behavior of the QSUEA function is as follows when a retrospective period is detected in a payroll run:
- It reads the Old Monthly Superannuation Table (OSMTH)for the previous payroll period.
- It reads the Superannuation Aust. (0220 Info type), in current pay period for Superannuation fund type. It reads Superannuation Fund Code Details Australia (T5QSF) table for Superannuation fund code details and also checks the relevant Ordinary Time Earnings (OTE)and Wage and Salary Earning (WSE) wage types.
- Checks the Old Monthly Superannuation Table (OSMTH)of the previous payroll period to read the corresponding OTE and WSE wage types. It then compares the values of these OTE and WSE wage types with the values of the corresponding wage types in the Internal Table (IT).
- It stores the difference in the values of these wage types, if any, in the Difference Table(DT). It adjusts this difference amount to the amount of the OTE and WSE wage types in Internal Table (IT).This is done so that the values of these wage types reflect the same amount in both IT and OSMTH.
- For SGC, it stores the delta super-able earnings of Ordinary Time Earnings (/142) wage type in Retro OTE for Super(/REO) wage type or Wage & Salary Earnings(/141)wage type in Retro WSE for Super(/REW)wage type.
- For Non SGC, it stores the delta super-able earnings of Super-able Earnings(/172)wage type in Retro OTE for Super(/REO)wage type or Wage & Salary Earnings(/141)wage type in Retro WSE for Super(/REW)wage type.
During the normal payroll run:
The function performs the following activities a) It reads the values of OTE and WSE wages from the DT table & b) It adds the value of the same into the internal table (IT)
During the payroll run, SUPER payroll function reads OTE and WSE wage types from IT and does the following:
- Performs the minimum earning check for SGC
- Calculates the SGC contribution amount.
Having understood this standard behavior of the QSUEA function, we will now come to the section on retrospective delta wage types. Since /141, /142 and /172 that we saw above were standard SAP cumulation wage types being used as OTE or WSE wage types for either SGC or non – SGC funds, the need for a separate logic to incorporate the retro handling was not required. The system would generate the standard /REO and /REW wage types with the differences in DT table for the SUPER function to use.
However, consider a scenario where the client has different conditions for different super funds as described below:
a) SUPER FUND A – The OTE used for this super fund contribution calculation would be only basic salary.
b) SUPER FUND B – The OTE used for this super fund contribution calculation would be basic + additional payment wage types that they have provided as part of their requirements.
In this case, we will need two different cumulation wage types to cater to the needs of these two different super fund contribution calculations. In such a situation we will need to create customer specific cumulation classes such as /191 and /192. Now, when we use these customer specific cumulation classes we still need to emulate the standard SAP behavior of carrying the differences between the old and new OTE wage types into the current period from the retro period as described above in the function QSUEA. The function will create specific retro OTE difference wage types in the DT table, specifically the inflow and outflow wage types as /A91 as inflow and /Z91 as outflow wage type in the case where the OTE will be /191.
Now the QSUEA function will create the difference between the OTE wage types value in OSMTH and the new value in the retro period and bring it into the current period using the outflow wage type /A91 and put it into the inflow wage type /Z91 which will then be used by the SUPER function to calculate the super contributions in current period. As an example, consider the below table and the calculations. The /A & /Z are created as per the wage types maintained in the configuration table in this section.
|In-Period||For-Period||OTE Wage type||Outflow||Inflow||Contribution (10%)|
Now, in case we are using a customer specific wage type like 9000 to cumulate the superable earnings into, in that case this section of the table V_T5QSF needs to be populated with custom inflow and outflow wage types for QSUEA to use, like for e.g. A900 and Z900. Also you will need to first maintain these custom wage types in the view V_T5QSW – superannuation wage type assignment table so that they will be available for you to choose them in the dropdown in this section.
Section 4: Retirement Age
The age maintained in this section will be the cut off for super contributions for male and female employees. After this age is reached, no longer super will be generated.
Section 5: Aged Employee
This section is used to maintain the percentage and deduction wage type for the aged employee own contributions.
Section 6: Additional Information
This section consists of various administrative details for the fund code.
Section 7: Checkbox for Superstream Zero Earnings
If this checkbox is used, the superstream report will show zero earnings in such a case that it occurs for an employee payment amounts.
Section 8: Defined benefit fund
Select the checkbox to specify whether the Super Fund is a Defined Benefit Fund.
Tables for superannuation fund rules setup – T5QSR and T5QSG
These tables specify the rules for the non – SGC and SGC funds respectively. The super modifier in the table V_T5QSR will be used to group the superannuation funds according to personnel area / sub area combination so that the calculation for each area happens correctly.
The table V_T5QSG contains the ceiling on the earnings for e.g. $57.090,00 and the minimum earning per month as $450.00.
In the table V_T5QGP, the country modifiers are maintained against a combo of personnel area/ sub area. The employer identifier is also specified in this table in the section on CSS/PSS relevant fields –
Specifies the employer or member number given by the superannuation fund to the company (employer). Data stored in this field originates from Superannuation Fund Generated Employer Identifier.
This function is called after reading in the superannuation infotypes P0220. It will call the program RPCSUPQ0 which does the actual calculations. Wage types created by this program are put back into the IT table to eventually end up in the RT table. Also passed in and out of the program are tables SMTH which keeps monthly earnings, SQTR which keeps quarterly earnings and SHRS which keeps hours and earnings per week.
Wage Types RSEC and RSAS
There is a concept of Reportable Employer Super Contributions and according to ATO, Reportable Employer Superannuation Contributions includes Salary sacrificed Superannuation contributions as well as any additional Superannuation contributions.
For this purpose, the SUPER function creates two wage types RSAS and RSEC during payroll processing.
Salary Sacrifice Arrangement : RSAS wage type
When an employee has a salary sacrifice arrangement and the contributions belong to this category, the RSAS is generated in SUPER function which is primarily used to report the Salary Sacrifice. It stores the pre-tax employee deduction. A salary sacrifice customer wage type is recognized by specification ‘S’ – Salary Sacrifice wage type (Reduce Taxable Gross) maintained for the wage type in processing class 21.
Additional Contribution by employer due to employee influence: RSEC wage type
In the IT 0220 – Superannuation details – When “No influence by the Employee” is unchecked, wage type RESC is generated if employee influences employer contribution. Depending on the funds, Non-SGC funds or SGC funds, different logic is followed to determine the value of wage type RESC.
Retro processing of RSAS and RSEC wage types
During retro changes, RSAS and RESC retro differences are carried forward to current period, while the RSAS and RESC values in the original run of the for period are retained in the final RT of the retro periods. The system generates /ARE and /ARS as outflow wage types and /ZRE and /ZRS as the inflow wage types while retro processing of RSAS and RSEC wage types. In the QSUP sub-schema, there are four personnel calculation rules that work to attain the objective in retro processing of these wage types.
|QSRE||Eliminate Indicators for RESC and RSAS|
|QSR2||called only in retro payroll run, and used to determine /ARE, /ARS, /ZRE and /ZRS in Old Results Table|
|QSR1||called only in retro payroll run, and generate retro difference and populate /ARE or /ARS in Results Table and Difference Table. In the meantime, retain wage types RSAS and RESC in Internal Table with the same value as the Old Results table .|
|QSR3||called only in regular payroll run, and consider the outflow wage types /ARE or /ARS in Difference table, and add them to RESC or RSAS of Internal Table. Besides, populate /ZRE or /ZRS in Results Table.|
Superannuation in Australia is a complex statutory requirement and this is just a stepping stone in understanding how SAP realizes this in the system. Superstream is a concept that is used to report the contributions and this topic will be appended to this blog soon.