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.
If you do not see a ‘Statutory Rate’ percentage line in any employee’s Pay Template, you will need to make the change. Click here for the Xero Central help page on this process.