Employers should be paying Superannuation on Annual Leave Loading for OTE (Ordinary Time Earnings) – the employee’s usual hours of work. The employer is required to pay Super on OTE once the earnings are actually paid to the employee. Not all payments that form part of salary or wage, form part of OTE (overtime etc.)
When employees are on leave, they are not paid for actual attendance at work or for services, but receive Annual Leave Payments as a continuation of their ordinary pay during their ‘ordinary hours of work’, taking the place of earnings in respect of their actual hours worked. Therefore any salary or wages an employee receives while on annual leave, long service leave or sick leave is in respect of their ordinary hours of work and is OTE – and Super payments are required.
Superannuation is paid on Annual Leave Loading!! Employers should be paying Superannuation on Annual Leave Loading for OTE (Ordinary Time Earnings) &...Read More
From the 1st of July 2019, Single Touch Payroll will be the new way to report tax and super information to the ATO for ALL Australian Businesses...Read More
1st July is approaching fast! Are you set up for Single Touch Payroll (STP)? ALL small businesses are required to use STP from July 1st, 2019. You c...Read More