Wednesday, October 15, 2008
Changes to Superannuation Guarantee obligations
By law an employer needs to pay the Superannuation Guarantee on behalf of employees on all "ordinary time earnings". From July 2008 there will be only one effective definition of "ordinary time earnings", being the legislative definition.
Generally it is defined as the amount an employee earns for ordinary hours of work. It may include over-award payments, shift or casual loadings or commissions, some allowances and paid leave, but usually excludes irregular overtime and non-performance bonuses.
Also regularly excluded are fully expended expense allowances such as car allowances, reimbursed expenses, benefits subject to fringe benefits tax, maternity leave payments, annual leave loading, accrued annual leave, long service leave and sick leave, and payments in lieu of notice.