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Monthly tax tip:
We already know one change that will apply to employers, and that is the increase of super guarantee from 10.5% to 11% on 1 July 2023. STP-enabled payroll software should automatically update; however, this is something to keep an eye on to avoid underpaying super for employees. This should also be acknowledged in budget/cash-flow reports to avoid a surprise later. This rise, including the annual award pay rate rise will continue to place financial pressure on employing entities so it’s important to understand what payments are liable for super guarantee and which payments do not need to accrue it. If employees and payments are not set-up correctly in payroll software, super may accrue on payments that do not require it which would mean an unnecessary expense to employers. Please see below for a breakdown of what payments accrue super, and what payments do not. However, if you are ever unsure then please contact our office to discuss any payroll queries.
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Accrues super guarantee
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DOES NOT accrue super
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| Ordinary hours |
✔️
|
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| Overtime hours |
|
✔️
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| On-call allowance |
|
✔️
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| Expense allowance |
|
✔️
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| All other allowances |
✔️
|
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| Bonus in respect of overtime |
|
✔️
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| All other bonuses |
✔️
|
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| Annual leave loading |
|
✔️
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| Parental & ancillary leave |
|
✔️
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| All other leave types |
✔️
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If you would like to schedule a consultation with us then please jump onto our website where you can see our availabilities and book a time that suits you.
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