Skip to content
← Payroll & expenses

Enter your idea

Payroll & expenses: Payroll

Categories

AU Payroll - Super maximum contribution base

Employers are only required to pay superannuation guarantee up to a quarterly threshold (maximum contribution base). At the moment Xero doesn’t cap the super at this level, and will allow super above the cap to be booked. (In fact, to limit the super at the cap requires a work-around adding 2 lines, one with 0% super and another with the fixed amount up to the cap.). Employers can easily overpay their employees’ super. This functionality needs to be built into Xero.

139 votes

We're glad you're here

Please sign in to leave feedback
Signed in as (Sign out)
Close
Close

We’ll send you updates on this idea

Antonia Connolly shared this idea  ·   ·  Report…  ·  Admin →
How important is this to you?

We're glad you're here

Please sign in to leave feedback
Signed in as (Sign out)
Close
Close
Accepted  ·  AdminDavid Reynolds (Admin, Xero) responded  · 

Thanks everyone, we appreciate you continuing to share your support for a maximum contribution base. We understand how this would reduce current manual calculations and help avoid overpaying super.

Our product teams have continued to review this idea as they plan their roadmaps, however at this point it's not something we've roadmapped.

For now this idea remains Accepted and will keep being considered as our product team plan future improvements to payroll. We’ll share an update here if there’s meaningful progress.

Show previous admin responses (4)

We're glad you're here

Please sign in to leave feedback
Signed in as (Sign out)
Close
Close
Submitting...
An error occurred while saving the comment
  • Anita Wildman commented  ·   ·  Report

    Please please please address this - it is critical.
    Should be even easier now there is only one annual cap.

  • David Geddes commented  ·   ·  Report

    The continued angst and feedback on this issue, surely demonstrates how pathetically trite and inadequate David Reynolds’ response is.

    This is a serious and critical issue for your customers that requires a solution.

    This issue cost us/our employee serious dollars. One of these days Xero will get itself sued for this and you sure can’t say you weren’t warned.

    The customer community is crying out for this change. WAKE UP XERO.

    Forget the cosmetic tinkering with the platform and do something useful.

    There’s been a lot of talk about SaaS companies such as Xero being disrupted by AI. If this is how Xero treats its customers, then all I can say, is bring it on.

    FIX THIS, NOW.

  • Tzu-Han Lin commented  ·   ·  Report

    This is a straightforward fix which is now a massive compliance issue with payday super. As it is, Xero should not be advertising an automatic super feature as maximum contribution base needs to be manually calculated.

    It is baffling this had been stuck for years and isn’t being prioritised.

  • Jessica Browne commented  ·   ·  Report

    This is a compliance and professional liability risk. Please address it

  • Jack Roberts commented  ·   ·  Report

    We need a customizable superannuation contribution limit that resets at EOFY.
    We have several employees that will exceed the superannuation contribution cap, some that have negotiated a certain amount of excess contribution. With payday super removing the quarterly cap and only having an annual cap its even more critical to us that we can instate an upper limit that applies since these staff will accrue at 12% for only half the year.

  • Anton Siva commented  ·   ·  Report

    Superannuation limit to be able to apply, so that close to year end we don't pay more than cap

  • Anthony Grant commented  ·   ·  Report

    This is a critical feature of any app that claims to calculate super in a payroll function. If payroll was free then I would understand why some details of an official ATO rule are not followed correctly but xero charges for payroll and should be held liable for any superannuation payments their software incorrectly pays above the SGT rule. OR, implement the correct calculations as in IMMEDIATE fix. Given the fact we are in July this should be at the very top of the road map. Can someone from Xero provide an update for the community please

  • Linda Clifford commented  ·   ·  Report

    This feature needs to be added. For the price of Xero subscriptions atm to have to do "manual" calcs and keep records is very poor. Please find a workaround than having to keep spreadsheets or the like to keep from overpaying super.

  • John Fallon commented  ·   ·  Report

    How is not updated with the new payday super rules - can someone from Xero please comment here on this?

  • Anne Dale commented  ·   ·  Report

    Hi, again following up where this is at?

    t is a core need for employers to ensure employees are getting the right amount of super.

    It should be prioritised as the workaround seems very 2001 and this issue is now outstanding for many years.

  • Jenny Dahanayake commented  ·   ·  Report

    Hi Following up on this, is there any update on the MSBC cap added to xero.

  • Antonia Connolly commented  ·   ·  Report

    This becomes even more critical with the advent of payday super. If the payroll incorrectly applies super over the max contribution base, it is going to have been paid before there’s a chance for it to be identified in a review of the quarter. It has the potential to cause a very expensive mistake.

  • Susan Madden commented  ·   ·  Report

    Is there an update to this request? I can't believe it's not part of standard Xero functionality.

  • Dane Pollack commented  ·   ·  Report

    Ive been going on about this for a while. And unfortunately, as Xero cant calculate this at the moment, i have to manually run calculations on our payruns against the maximum SGC contribution amount.

    I would think that the resolution to this wouldnt be to complex as it is a fairly simple calculation, and is something other systems have built in.

  • Emma Davies commented  ·   ·  Report

    Kelly, this is incorrect. The quarterly contributions base is an employer contributions limit. This has nothing to do with other income an employee has (you may be thinking of the concessional/non-concessional contributions caps, which are affected by other contributions).

    This definitely should be included as a payroll function in Xero. The functionality is included as standard in most other payroll packages.

    Please see here for basic information on the Maximum Super Contributions Base:
    https://www.ato.gov.au/tax-rates-and-codes/key-superannuation-rates-and-thresholds/super-guarantee

  • David Geddes commented  ·   ·  Report

    Spot on cpomments this morning. Thius is an issue that Xero should be across. I've had a YE nightmare resolving this eact issue - employer overpayment/provisioning of super for an employee earnings well over $250k. This needs to be fixed, pronto. Thx

  • Robyn Leydon commented  ·   ·  Report

    Hi Kelly, I want to reiterate George's comments. This request is about complying with the employer's obligations regarding super for high salaried employees (those earning more than $250,000pa).

    Your reply makes me think Xero may not fully understand the SGC system.

  • Nicki Passanisi commented  ·   ·  Report

    Kelly, you are talking about the concessional cap for employees, we are talking about the quarterly cap for contributions made by the employer.

← Previous 1 3