This article explains how compliance accounts such as GST, PAYGW, Superannuation, and Payroll Tax are calculated and projected in Magnifi, and how they flow into the Balance Sheet.
Refer to this guide when you want to:
Understand how GST, PAYGW, Superannuation, and Payroll Tax are automatically projected.
Review or adjust the percentage rates applied to compliance accounts.
Set or update payment terms for compliance liabilities.
GST is automatically calculated on accounts flagged as GST accounts under the Chart of Accounts.
When you enter projections in either the Profit and Loss or Balance Sheet, GST entries are created automatically in the Balance Sheet.
You need to specify the GST liability (or receivable) account under Chart of Accounts → Balance Sheet. This is where projected GST and payments are reported.
When Compliance Terms are applied, the scheduled payment will appear under the Payments drop-down beneath the GST liability account in the Balance Sheet. At the scheduled payment date, Magnifi automatically reduces both the GST liability and the linked cash account.
PAYGW is projected as a % of wages.
You need to specify the PAYGW liability account under Chart of Accounts → Balance Sheet. This is where projected PAYGW and payments are reported.
When you specify the PAYGW account, it appears as a hyperlink. Click the link to edit the PAYGW %. The default is 20%.
When Compliance Terms are applied, the scheduled payment will appear under the Payments drop-down beneath the PAYGW liability account in the Balance Sheet. At the scheduled payment date, Magnifi automatically reduces both the PAYGW liability and the linked cash account.
Superannuation is calculated automatically if employees are set up under Labour Drivers.
Update the superannuation % under Profit → Labour Drivers → Gross Wages.
The Superannuation account is linked to a Balance Sheet liability account (e.g., Superannuation Payable).
Superannuation projections appear in the Balance Sheet under the designated liability account.
If Superannuation is linked under Chart of Accounts → Payroll Link, Magnifi uses Compliance Terms to determine cashflow timing.
If not linked, you must specify payment terms as you would any other payables account under Chart of Accounts → Profit and Loss tab.
When Compliance Terms are applied, the scheduled payment will appear under the Payments drop-down beneath the Superannuation liability account in the Balance Sheet. At the scheduled payment date, Magnifi automatically reduces both the Superannuation liability and the linked cash account.
Payroll Tax is calculated automatically if employees are set up under Labour Drivers.
Update the payroll tax % under Profit → Labour Drivers → Gross Wages.
Payroll Tax is linked to a Balance Sheet account under Chart of Accounts. If you accrue payroll tax, link it to an accrual account (e.g., Payroll Tax Payable, Sundry Creditors).
If Payroll Tax is linked under Chart of Accounts → Payroll Link, Magnifi uses Compliance Terms to determine cashflow timing.
If not linked, you must specify payment terms as you would any other payables account under Chart of Accounts → Profit and Loss tab.
When Compliance Terms are applied, the scheduled payment will appear under the Payments drop-down beneath the Payroll Tax liability account in the Balance Sheet. At the scheduled payment date, Magnifi automatically reduces both the Payroll Tax liability and the linked cash account.
GST and PAYGW % can be updated by clicking the hyperlink in the Account Type section under Chart of Accounts → Balance Sheet.
Payroll Tax and Superannuation % can be updated under Profit → Labour Drivers → Gross Wages.
Payment terms for GST, PAYGW, Superannuation, and Payroll Tax are managed under Cashflow → Compliance Terms.
These terms determine when each liability is paid, which drives both Balance Sheet and Cashflow projections.
Note: Compliance Terms only apply to Superannuation and Payroll Tax if the accounts are linked under Chart of Accounts → Payroll Link.
Are compliance accounts re-forecasted when I use actuals?
Yes. When you import actuals, Magnifi re-forecasts compliance liabilities (GST, PAYGW, Superannuation, Payroll Tax) based on actual results.