Qualifying earnings: the new way to calculate super

From 1 July, you’ll need to calculate super contributions based on qualifying earnings instead of ordinary time earnings.

As an employer, you currently have to calculate and pay super based on your employees’ ordinary time earnings (OTE).

However, from 1 July, super and the super guarantee charge will be calculated based on your employees’ qualifying earnings (QE) instead.

For most employers this doesn’t change the way you pay super or the amount you need to pay. However, it may require updates to payroll software configuration and reporting.

While you don’t need to use QE just yet, take action now to review your pay codes to see which codes need to be mapped to QE.

For more information, check ATO’s factsheet explaining QE.

Keep up to date

ATO has tailored communication channels just for small businesses – so you’ll always be up to date with the latest information and changes relevant to you.

Explore more articles in their Small business newsroom.

Subscribe to ATO’s free:

• monthly Small business email newsletter
• email notifications about new and updated information on our website – just select the Business and organisations category to get updates relevant to you, including more articles like this one.

Source: ATO