We wanted to provide some clarification around Qualified Earnings (QE), as there has been some confusion (understandably!) around how this compares to Super Guarantee (SG).
Qualifying Earnings is similar to the earnings used to calculate Super Guarantee, but it is not always the same. The key difference is that Qualifying Earnings is based on standard rules set outside of awards, whereas Super Guarantee obligations can vary depending on the applicable award or industrial agreement.
Because of this, there may be situations where:
•An earning is subject to super but is not considered Qualifying Earnings (e.g. overtime under some awards), or
•An earning is not subject to super but is still considered Qualifying Earnings (e.g. certain allowances like first aid)
To support this, we have introduced a new setting in Allowance/Deduction/Entitlement Maintenance, where each code can be flagged as “Qualifying Earnings for Super Guarantee".
What we will do by default:
We will automatically tick the Qualifying Earnings for Super Guarantee flag on ADE codes that are currently included in Super Guarantee calculations.
What you may need to review:
Due to differences in awards, you may need to adjust this setting for certain codes, particularly:
•Overtime
•Allowances
For example:
If your award requires super to be paid on overtime, overtime may still need to be excluded from Qualifying Earnings.
If your award does not require super on certain allowances, those allowances may still need to be included in Qualifying Earnings.
We appreciate this is not always intuitive, but these requirements are based on ATO reporting guidelines.
If you’re unsure how this applies to your setup, we recommend reviewing your award requirements or speaking with your payroll advisor.
The below link may also be helpful:
