Payroll and super
Practical steps, records and official guidance on payroll and super.
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Questions
41. How much super must I pay, and which earnings count towards it?
The super guarantee rate is 12%, as it has been since 1 July 2025. From 1 July 2026 it is worked out on qualifying earnings, up to a maximum contribution base of $270,830 for 2026-27. Identify the applicable super regime and eligible earnings for the pay date before calculating a contribution.
- From July 2026, use the ATO Payday Super guidance and map each pay component to the relevant earnings definition.
- Check worker eligibility, limits and payroll settings; retain the calculation and contribution evidence.
The old quarterly SG worksheet does not establish current Payday Super entitlement.
Payday Super for employers · Super guarantee rate history on this site · ATO maximum contribution base · Maximum super contribution base by year
The bold answer was checked on 27 September 2026.
Link to question 4142. By what date must a super contribution reach the employee’s fund?
Since 1 July 2026, the fund must receive the contribution within 7 business days after payday, or within 20 business days for the first contribution for a new employee or to a new fund. Test receipt at the employee’s fund against the applicable deadline.
- Record payday, pathway, amount, remittance date and confirmed fund receipt date.
- Use the existing timing example to distinguish timely remittance from evidence of timely receipt.
The timing tool needs the contribution amount supplied and the correct pathway selected.
Payday Super for employers · Payment deadlines for Payday Super · Payday Super receipt evidence example
The bold answer was checked on 27 September 2026.
Link to question 4243. What should I do if a super payment is late, rejected or missing?
Since 1 July 2026, super that is unpaid, late, short or paid to the wrong fund makes you liable to the super guarantee charge, which the ATO assesses. The charge includes notional earnings and may include an administrative uplift of up to 60%; paying the fund what you owe as soon as possible, even in part, reduces it. Investigate the payment trail and apply the current late-payment process.
- Reconcile payroll, clearing house status, rejections and fund receipt for each affected employee.
- Resolve the cause, record any replacement payment and review the ATO’s reporting and charge requirements.
Sending a replacement does not automatically remove a late-payment consequence.
Payday Super for employers · What to do if you miss a Payday Super contribution · Payment deadlines for Payday Super · Payday Super receipt evidence example
The bold answer was checked on 27 September 2026.
Link to question 4344. Do I have to pay super for a contractor who invoices through an ABN?
If you pay a contractor under a contract that is mainly for their labour, meaning more than half its dollar value, they are an employee for super guarantee purposes and you may need to pay super for them. An ABN makes no difference. Review the actual contract and working arrangement against the ATO’s super eligibility guidance.
- Record who performs the work, how they are paid and whether the contract is for their labour.
- Retain the eligibility conclusion separately from the supplier’s ABN and invoice.
An ABN is not proof that super is unnecessary.
Payday Super for employers · Super for independent contractors
The bold answer was checked on 27 September 2026.
Link to question 4445. How much PAYG tax should I withhold from an employee’s pay?
Use the ATO tax withheld calculator or tax tables for the pay period, whether weekly, fortnightly or monthly. The employee’s TFN declaration or withholding declaration tells you whether to withhold extra for a study or training support loan. Use the ATO withholding calculation for the payment type and pay period.
- Check the declaration, residency, tax-free threshold choice, study loan information and any variation.
- Apply the current schedule or calculator and reconcile payroll totals to the withholding liability.
A resident annual income tax worksheet is not a payroll withholding calculator.
PAYG withholding · Tax withheld calculator
The bold answer was checked on 27 September 2026.
Link to question 4546. How do I finalise Single Touch Payroll at year-end?
Make the STP finalisation declaration by 14 July each year. Reconcile payroll to the ledger and ATO reporting before making the STP finalisation declaration.
- Check year-to-date wages, withholding, super and adjustments by employee.
- Resolve discrepancies, confirm the applicable deadline and retain the finalisation evidence.
An ordinary payroll submission and a finalisation declaration are different steps.
Single Touch Payroll · End-of-year finalisation through STP · Finalise your STP data by 14 July · Monthly close review pack
The bold answer was checked on 27 September 2026.
Link to question 4647. How do I calculate an employee’s final pay, including unused leave?
Final pay is the wages owing, including penalty rates and allowances, plus any unused annual leave with loading if it would have been paid during employment; it can also include accrued or pro rata long service leave. Sick and carer’s leave isn’t paid out, and most awards require final pay within 7 days after the last day of employment. Build final pay from the employee’s entitlements and the circumstances of departure.
- Gather the award or agreement, termination date, unpaid hours, leave balances and notice details.
- Check leave loading, redundancy and long service leave where applicable, then apply the relevant tax treatment.
The generic staff cost calculator cannot determine final pay entitlements.
Final pay - Fair Work Ombudsman
The bold answer was checked on 27 September 2026.
Link to question 4748. When does my business become liable for payroll tax in NSW?
For 2026-27, NSW payroll tax applies to taxable wages above $1,200,000 a year, at a rate of 5.45%. Review Australian taxable wages, NSW connection, grouping and the applicable threshold.
- Prepare a wages reconciliation that includes the categories Revenue NSW requires.
- Check the monthly registration trigger and annual reconciliation requirements for the relevant year.
Book payroll expense alone can omit taxable benefits, super or grouped wages.
Revenue NSW payroll tax · Payroll tax thresholds and rates, Revenue NSW
The bold answer was checked on 27 September 2026.
Link to question 4849. Do contractor payments count towards NSW payroll tax?
Payments to a contractor who provides the services of a worker under a relevant contract are liable for NSW payroll tax unless an exemption applies, such as for some services provided for 90 days or less in a financial year, or services the contractor provides to the public. Contractor payments need a separate payroll tax review under the NSW relevant-contract rules.
- Keep the contract, services, days worked and evidence for any exclusion claimed.
- Reconcile reviewed contractor amounts to the payroll tax workpaper.
An invoice, ABN or GST registration alone does not establish an exclusion.
Revenue NSW payroll tax · Contractors, Revenue NSW
The bold answer was checked on 27 September 2026.
Link to question 4950. What does an employee cost after super, leave, insurance and other on-costs?
Start with wages plus the 12% super guarantee, then add leave, workers compensation, any payroll tax and other on-costs. Add annual wages, super and the other costs you expect to pay, then consider productive capacity separately.
- Enter the annual super amount and other costs such as insurance, payroll tax, recruitment and equipment.
- Allow for paid leave when estimating productive hours, and add relief staff costs only where expected.
Do not add ordinary paid leave again if it is already included in the annual salary.
Final pay - Fair Work Ombudsman · Super guarantee rate history on this site · Staff cost calculator
The bold answer was checked on 27 September 2026.
Link to question 50Reviewed 11 September 2026. Use the pay date and applicable payroll rules. Super questions distinguish the regime from July 2026. Tax guidance must match your year and circumstances.
One of 10 topics in the 100 Australian accounting questions.