Issue

How can I process the repayment of overpaid superannuation guarantee in Class?

Background

The ATO requests the repayment of overpaid superannuation guarantee from the superannuation fund.

Example of the ATO letter

The money is withdrawn from the member's account and reduces the member's balance. It can be processed as a member payment, however, this particular condition of release is not currently available in Class. 

Resolution

As Class does not have this particular condition of release available, there are two options to process the repayment of overpaid superannuation guarantee in Class.

Option 1: Treat the repayment as a Lump Sum

Option 2: Treat the repayment as a non-deductible expense under the required member's account

Both methods will ensure the member's balance is reduced by the amount of refund for overpayment of superannuation guarantee.

Treat the repayment as a Lump Sum

In this method, "Refund for Overpayment of co-contributions" is the closest match in Class for this situation. Make sure you update the Annual Return.

Navigate to Fund Level >  Transactions > Member Payments > Rollover/Lump Sum Out

1. Select the relevant member
2. Enter the payment date and description
3. Select the condition of release as "Refund for Overpayment of Co-Contributions"
4. Click on Payment Details tab
5. Enter the amount in "Gross Payment Amount"
6. Submit 

Treat the repayment as a non-deductible expense under the required member's account

Navigate to Fund Level >  Transactions > Fund Expense > Fund General Expense

1. Select the Expense Type as "Non-Deductible Expense"
2. Enter the payment date and amount
3. Click on "Override" button in the "Allocate Expense To" field
4. Select the required member account
5. Submit