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Justin-T_81's avatar
Justin-T_81
Contributing Cover User
5 years ago
Solved

Superannuation on annual leave and leave loading

Does superannuation get paid on both annual leave and leave loading?

superannuation
  • Tracey_H's avatar
    Tracey_H
    5 years ago

    Hi Justin-T_81 

     

    Thanks for your post. The Superannuation Guarantee is paid on Ordinary time earnings (OTE) which is the amount your employee earns for their ordinary hours of work. This link to the ATO website explains OTE in detail and which payments are considered to be OTE: Super for employers 

     

    Please let me know if you need further help.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

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  • Tracey_H's avatar
    Tracey_H
    Former Staff
    5 years ago

    Hi Justin-T_81 

     

    Thanks for your post. The Superannuation Guarantee is paid on Ordinary time earnings (OTE) which is the amount your employee earns for their ordinary hours of work. This link to the ATO website explains OTE in detail and which payments are considered to be OTE: Super for employers 

     

    Please let me know if you need further help.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

    • Adminstrator's avatar
      Adminstrator
      User
      4 years ago

      From the Fair Work website, we have to paid the Superannuation on Annual Leave, not the Annual Leave Loading.  However, when we process the annual leave payment to the employee, the SGC amount is not correct, we have to change it manually.

       

      Could you please updated the software to match Fire Work policy?

      • Tracey_H's avatar
        Tracey_H
        Former Staff
        4 years ago

        Hi Adminstrator 

         

        For Annual Leave Loading to be excluded from super calculations you will need to exempt the leave loading payroll category:

         

        1. Open the superannuation category (Payroll > Payroll Categories > Superannuation tab > open the applicable superannuation category).
        2. Click Exempt. If this button is not clickable, it means the super category isn't set up to calculate as a percentage so can't be exempted from a wage category.
        3. Select any wage categories to be excluded from super calculations.
        4. Click OK then click OK again to save the change.

        Please do let me know if I have misunderstood your question.