From 1 July, your employer clients will shift from calculating super based on ordinary time earnings (OTE) to using qualifying earnings (QE). Stay informed about the changes so you can guide them through the transition to Payday Super.
They’ll need to calculate super as 12% of QE, which includes:
- ordinary time earnings
- all commissions
- salary sacrifice contributions
- other amounts paid to extended definition employees, including payments to independent contractors.
This is broader than OTE, but for many of your employer clients, it won’t change the way they pay super or they amount they need to pay. However, it may require updates to payroll software configuration and reporting. They should review and prepare to correctly map pay codes now to meet reporting obligations and ensure readiness when their updated payroll software is available.
Each payday, they will need to report both year-to-date QE and super liability for each employee through Single Touch Payroll (STP).
Remind your employer clients to check their software supports QE reporting. It’s important they understand that once Payday Super begins, they'll need to report both QE and super liability amounts in STP.
For more information visit ato.gov.au/QE