Menu

Superannuation guarantee payments checklist for employers

As of 1 July 2008, employers are required to use ordinary time earnings (OTE) to calculate the minimum super guarantee contributions required for eligible employees.  Ordinary time earnings are usually the payments, bonuses, commissions and allowances your employees earn for their ordinary hours of work.

Payments to an employee in relation to... Salary or wages?  OTE?
Awards and agreements    
 Overtime hours - award stipulates ordinary hours to be worked and employee works
 additional hours for which they are paid overtime rates		 Yes No 
 Overtime hours - agreement prevailing over award Yes  No 
 Agreement supplanting award removes distinction between ordinary hours and
 other hours		 Yes  Yes 
 No ordinary hours of work stipulated Yes  Yes 

 Casual employee -

shift-loadings
overtime payments

 

Yes
Yes

 

Yes
No
 Casual employee whose hours are paid at overtime rates due to a 'bandwidth'
 clause		 Yes  No
 Piece-rates - no ordinary hours of work stipulated  Yes  Yes
 Overtime component of earnings based on 'hourly driving rate' formula stipulated
 in award		  Yes No 
Allowances    
 Allowance by way of unconditional extra payment  Yes Yes 
 Expense allowance expected to be fully expended  No No 
 Danger allowance  Yes Yes 
 Retention allowance Yes  Yes 
 Hourly on-call allowance in relation to ordinary hours of work for doctors  Yes Yes 
Payment of expenses    
 Reimbursement No  No 
 Petty cash No  No 
 Reimbursement of travel costs No  No 
 Payments for unfair dismissal No  No 

 Workers' compensation -

returned to work
not working



Yes
No

Yes
No 
Leave payments    
 Annual leave Yes  Yes 
 Parental Leave - maternity, paternity and adoption leave No*  No 
 Ancillary leave - e.g. jury duty, defence forces reserves leave No*  No 
 Termination payments    

 Termination payments -

in lieu of notice
unused annual leave

Yes
Yes

Yes
No 
Bonuses    
 Performance bonus Yes  Yes 
 Bonus labeled as ex-gratia but in respect of ordinary hours of work Yes  Yes 
 Christmas bonus Yes  Yes 
 Bonus in respect of overtime only Yes  No 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* These payments are specifically excluded from being 'salary and wages' for superannuation guarantee purposes; however, they may be 'salary or wages' for income tax purposes.

Source: ATO


For more information about superannuation guarantee contributions, please contact Marc Peskett by calling our office on 03 9869 5900 or email us for more information.