How to record Pension Payments
Option 1. Enter transactions directly from the Transaction List Screen.
|From the Main Toolbar, go to Accounting.||
|Select Transaction List||
- From the Transaction List screen, select New Transaction. From the drop-down list, select Bank Statement.
- Input the date, reference and Description.
- Under the Account heading, select the bank account from the Input Bank Account box. Next, search and select account 41600/MEMBERCODE.
- Input the pension payment amount. SF360 will post a corresponding entry to the bank account fields on the screen.
- Select More + and you can review the member's minimum and maximum pension withdrawal amounts for the year. If PAYG withholding amounts need to be input, record it in the PAYG field. The PAYG field will be displayed regardless of the members age.
- After you have entered all information for the transaction, select Post to add the transaction and to return to the Transaction List screen, or select Post & Add Another to add the transaction to the Transaction List, but remain on the Bank Statement screen.
Option 2. Process from the Member List Screen
|Select Member from the Main Toolbar|
|Select Member List|
1. From the Member List Screen, select Pension Payment under Member Transactions.
2. The system will prompt users with the following questions, where users need to select a pension member account and decide if this is a cash payment or not. Click Ok to proceed.
3. Users will then be directed to the Transaction List Screen, where both sides of the entry account would be populated. Though users have the option to update to a different account.
Note: where users previously selected non cash payment, the system will allocate the transaction to 99800 Clearing account on one side. Users then need to change to a proper account.
4. Enter a payment amount and the rest would be the same as described in step 5 and 6 under Option 1 above.
Do I have to allocate the pension payment between member components ?
Transactions will simply need to be allocated to account 41600.
Simple Fund 360 will automatically reduce the Member's balance in the following order in accordance with Reg 6.22A of the SIS Regulations.
(a) first—to unrestricted non-preserved benefits;
(b) second—to restricted non-preserved benefits;
(c) third—to preserved benefits
The Payment will be automatically allocated between the Taxable and Tax-Free components based on the Member's Tax-Free proportion.
Calculation of the minimum Pensions Payment
You must pay a minimum amount each year to a member from their pension account.
Age is calculated as at the 1 July in the financial year in which the payment is made or the commencement day if that is the year in which the pension or commences.
Where the pension commences part way through the year, the minimum payment amount for the first year is calculated proportionately to the number of days remaining in the financial year, starting from the commencement day.
If the pension commences on or after 1 June, no minimum payment is required to be made for that financial year.
Account balance' means one of the following:
- the pension account balance on 1 July in the financial year in which the payment is made
- if the pension commenced during the financial year – the balance on the commencement day
- if the amount of the pension account balance is less than the withdrawal benefit that the member would be entitled to if the pension were to be fully commuted – the amount of the withdrawal benefit.
For more information check out the ATO website