As many of you would be aware, the compulsory Superannuation Guarantee Contributions (SGC) will increase from 9.5% (current rate) to 10.0% from 1 July 2021.
Each financial year, the superannuation guarantee rate will gradually be increasing to a rate of 12% by 2025. For more information, visit the following page:
How this change will work in Xero
If you have set your employees super lines to ‘SG Contribution’ then Xero will automatically take care of this percentage increase for you.
- Blue Payroll menu > Employees
- Select a particular employee
- Click on the Pay Template tab
- Have a look at the Superannuation line/s
You should see something like the highlighted below. The most important field is the far right field saying ‘Statutory Rate’ which means Xero will take care of the change.