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How do I stop superannuation calculating on Paid Parental Leave?

IMPORTANT NOTICE

Information provided by Deputy is intended for general guidance purposes only and is not a substitute for professional legal or financial advice. Deputy does not accept liability for actions taken based on this information.
Employers are responsible for ensuring their employees are paid correctly in line with the applicable legislation, award/s, industrial instrument/s and relevant employment agreements.
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Whether superannuation is calculated and leave accrues on company-paid parental leave depends on your individual business circumstances. With the introduction of Payday Super, special consideration also needs to be taken when reporting Paid Parental leave in Single Touch Payroll (STP) reports.  

This article explains how to check if superannuation is being calculated and leave accrued, when an employee is paid Company Paid Parental Leave in Deputy Payroll (AU), and how you can change this to meet your individual business needs. 

This article also shows you how to check and amend the settings for how the Parental Leave payment is treated for STP reporting.
 

Before you read

  • Target audience: This article is for System Administrators, Payroll Administrators, Payroll Managers, and users responsible for managing payroll. 
  • Plan restrictions: This article is relevant for Australian customers using Deputy Payroll (AU).

This article covers

Why is superannuation being calculated on Paid Parental Leave?

In Deputy Payroll (AU), Paid Parental Leave defaults to the Normal payment Class.

The Normal Class attracts superannuation, so employer super contributions may be calculated when Paid Parental Leave is included in a pay run.

Note: Your business's superannuation obligations can vary depending on the payment and your circumstances. Check which payment Class is appropriate for your business requirements before making changes.

How do I stop superannuation calculating on Paid Parental Leave?

If you do not wish for Paid Parental Leave to attract superannuation, you can change the Class for the payment during the pay run.

  1. Open the affected team member's Payslip during the pay run.
  2. Locate the Paid Parental Leave payment line.
  3. Change the Class from 'Normal' to the super-exempt Class that meets your payroll requirements.
  4. Check the payslip to confirm superannuation is no longer being calculated for the Paid Parental Leave payment.

You may need to make this change each time Paid Parental Leave is included in a pay run.

Make sure the Class you select meets your business's superannuation obligations. Deputy provides payroll tools to help you process payments but doesn't determine your legal or regulatory obligations.

What should I check if leave is also accruing?

Annual Leave and Personal Leave shouldn't accrue for the Paid Parental Leave payment in the scenario covered by this article.

If Annual Leave or Personal Leave is accruing unexpectedly, check the affected team member's payslip and Paid Parental Leave payment before completing the pay run.

If the unexpected accrual continues, contact Deputy Support with details of the affected pay run and team member.