Payday Super: What replaces Ordinary Time Earnings under payday super?

What new concept replaces Ordinary Time Earnings under payday super?

Meet qualifying earnings, the new term you'll need to know.

Qualifying earnings (QE) is the payday super replacement for Ordinary Time Earnings (OTE), and while the concept is similar, there are some meaningful differences. QE includes ordinary time earnings as you'd expect, but also captures commissions earned outside of ordinary hours and certain salary sacrificed amounts that were previously excluded from OTE calculations.

For payroll teams, this matters because it affects how the super guarantee is calculated on each pay run. If your payroll software is applying the old OTE logic without an update for QE, your SG calculations could be incorrect from day one of payday super.

Now is the time to confirm with your payroll provider that their system is being updated to reflect qualifying earnings, and to review any employees whose pay includes commissions or salary sacrifice arrangements, as these are most likely to be affected.

Microkeeper will be updated to reflect the qualifying earnings definition ahead of the payday super start date.

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Read the full blog on Payday Super Questions Answered

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