Superannuation Processing
A structured procedure for calculating, reconciling, and remitting superannuation guarantee contributions to employee nominated funds in compliance with Australian superannuation legislation.
Purpose
To ensure that superannuation contributions are calculated correctly on ordinary time earnings, remitted to the correct funds on time, and reported accurately to avoid the superannuation guarantee charge and meet all legislative obligations.
Scope
Covers the calculation of superannuation guarantee contributions, salary sacrifice contributions, and any additional employer contributions for all eligible employees. Includes lodgement via a clearing house and reconciliation of contributions.
Prerequisites
- Up-to-date employee superannuation fund details (USI, member number) in the payroll system
- Payroll has been processed for the relevant period with accurate ordinary time earnings calculated
- Access to a compliant superannuation clearing house
- Current superannuation guarantee rate confirmed
Step-by-Step Procedure
Calculate Superannuation Contributions
Calculate the superannuation guarantee contribution for each eligible employee based on their ordinary time earnings for the period.
- 1.1Identify all eligible employees (including part-time and casual employees)
- 1.2Calculate ordinary time earnings for each employee for the period
- 1.3Apply the current superannuation guarantee rate to ordinary time earnings
- 1.4Add any salary sacrifice contributions and additional employer contributions
- Remember that the superannuation guarantee applies regardless of how much an employee earns — there is no longer a minimum monthly threshold
Reconcile Superannuation to Payroll
Reconcile the total superannuation contribution calculated to the payroll reports and general ledger superannuation liability account.
- 2.1Run the superannuation contribution report from the payroll system
- 2.2Compare the total to the superannuation liability account in the general ledger
- 2.3Verify that the contribution for each employee matches the payroll calculation
- 2.4Investigate and resolve any discrepancies before submission
Verify Employee Fund Details
Confirm that the superannuation fund details for each employee are current and valid, particularly for new employees or those who have recently changed funds.
- 3.1Review the fund details for any new employees added since the last contribution run
- 3.2Confirm the USI and member number for each employee
- 3.3Check for any stapled super fund notifications from the ATO for new employees who have not provided a choice form
- 3.4Update any fund changes submitted by employees during the period
Generate the Contribution File
Generate the SuperStream-compliant contribution file from the payroll system for submission to the clearing house.
- 4.1Generate the contribution file in the required SuperStream format
- 4.2Review the file for completeness and accuracy
- 4.3Verify the total contribution amount matches the reconciled figure
- 4.4Save a copy of the file for records
Submit to the Clearing House
Upload the contribution file to the superannuation clearing house and authorise the payment.
- 5.1Log into the clearing house portal
- 5.2Upload the SuperStream contribution file
- 5.3Review the submission summary for errors or rejected records
- 5.4Resolve any file errors and resubmit if necessary
- 5.5Authorise the payment from the nominated bank account
- Submit contributions each pay cycle rather than waiting until the quarterly deadline to reduce risk and simplify reconciliation
Monitor Fund Acceptance
Monitor the clearing house to confirm that all contributions have been accepted by the receiving funds.
- 6.1Check the clearing house portal within five business days of submission for acceptance status
- 6.2Investigate any rejected or returned contributions
- 6.3Contact the fund or employee to resolve rejected contributions (e.g., incorrect member number)
- 6.4Resubmit corrected contributions promptly
Record and Reconcile in the Accounting System
Post the superannuation contribution journal entry to the general ledger and reconcile the superannuation liability account.
- 7.1Post the superannuation expense and clear the liability in the general ledger
- 7.2Reconcile the clearing house payment to the bank statement
- 7.3Confirm the superannuation liability account balance reflects only unpaid contributions
- 7.4File the contribution reports and clearing house confirmations
Quarterly Compliance Check
At the end of each quarter, perform a comprehensive reconciliation to ensure all superannuation obligations have been met before the quarterly due date.
- 8.1Reconcile total contributions paid for the quarter to the total obligation calculated
- 8.2Ensure all contributions have been received by the funds (not just submitted to the clearing house) by the quarterly due date
- 8.3Identify any shortfalls that need to be rectified before the due date
- 8.4Document the quarterly reconciliation and retain for audit
- Contributions must be received by the fund — not just submitted to the clearing house — by the quarterly due date to avoid the superannuation guarantee charge
Quality Checkpoints
Common Mistakes to Avoid
Expected Outcomes
Superannuation contributions are received by funds before the quarterly due date 100% of the time, with zero super guarantee charge incurred.
At least 99.5% of superannuation contributions are correctly calculated on first submission.
Rejected contributions are investigated and resubmitted within five business days of notification.
Frequently Asked Questions
Do casual employees receive superannuation?
Yes. From 1 July 2022, all employees regardless of how much they earn are entitled to superannuation guarantee contributions. The previous $450 per month threshold has been removed.
What is a stapled super fund?
A stapled super fund is an existing fund linked to an employee. If a new employee does not choose a fund, you must check with the ATO for a stapled fund before defaulting them to your workplace default fund.
What is the superannuation guarantee charge?
The super guarantee charge (SGC) applies when contributions are not paid in full by the due date. It includes the shortfall amount calculated on total salary (not just OTE), a nominal interest component, and an administration fee. The SGC is not tax-deductible.
Can employees choose their own superannuation fund?
Yes, under the choice of fund legislation, most employees can choose which complying super fund their contributions are paid into. Employers must provide a standard choice form to eligible employees.
What is the superannuation guarantee due date?
Superannuation guarantee contributions must be received by the employee fund by the 28th day of the month following the end of each quarter (28 October, 28 January, 28 April, 28 July). Contributions must be received, not just submitted, by this date.
Want this customised for YOUR business?
We'll tailor every step to your exact operations, tools, and team structure.