Set Up Default Maximum Superannuation Contribution Base (MSCB) Rules (AUS)
Security:
Set Up: Payroll (Superannuation) - AUS
. Workday requires you to have a default Maximum Superannuation Contribution Base (MSCB) rule, to define what will happen when a worker's earnings exceed the MSCB amount.
Workday uses the default MSCB rule if there aren't any active superannuation configuration periods. Workday also uses the default MSCB rule if you don't specify a rule in the active Superannuation Configuration Period.
The MSCB rule is only effective with percent-based plans. You need to manage Amount-based plans manually, but they do contribute towards the MSCB Quarter to Date amount.
- Access theMaintain AUS Superannuation Configurationtask.
- Select theUpdate Superannuation Default Configurationoption.
- Select an option from theExceeds MSCB Rulefield. The options available are:
Option Description Pay Excess to Taxable IncomeYou pay any amount that exceeds the cap as taxable income to the worker.Cap Payments at MSCBYou don't pay any amount over the cap to the worker.Ignore MSCBYou continue paying into the worker's superannuation fund, even if they’ve reached the cap.
You can use superannuation configuration periods to apply different MSCB rules for specific periods of time, or for groups of workers.