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. You do not have to provide the minimum support for the part of earnings above this limit - see here.
This means that employers are not required to pay super guarantee amounts for amounts earned above the maximum quarterly contributions base. The ATO dictates these amounts - see here.
You can set the maximum quarterly contributions base for employees by following these steps:
- Open the employee file that you wish to set the maximum quarterly contributions base value for
- Open the pay run defaults for that employee
- At the bottom of the pay run defaults section, you can set the maximum quarterly contributions base value (24/25 $65070)
- Click Save.
N.B. For employees who are on a pay rate template, you will need to set the maximum quarterly contributions base from within the Template rather than in the employees pay run defaults.
What happens when an employee reaches the maximum quarterly contributions base?
When the maximum quarterly contributions base has been reached, super will stop being accrued for that employee until the following quarter. You can see in the pay run when the contributions base has been reached as an icon will be displayed next to the employees super value.
Can I disable the maximum quarterly contributions base?
No, however, if you do not wish for the contributions base to be applied, you can set a contributions base for the employee that is higher than what their earnings for the quarter would be so the earnings base will never be reached. You can do this by selecting the "override" option and changing the value.