Superannuation paid on Phone Allowance

I am reading this below, and currently pay a few employees a fortnightly phone allowance with no Super (SG) paid on them, but wondering if this means I should be now paying 11% on top of the $23.03 phone allowance from 1/7/2023, does anyone know?


3. Super now payable on overtime and allowances

The SG Charge is not calculated based on Ordinary Time Earnings (OTE) as normal super guarantee is. SGC is calculated as 11% (current SG rate) of the Gross Earnings of the employee – in simple terms, this means super is now payable on any overtime earnings – which would have been exempt from super, had it been paid on time.

Answers

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,314 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    Hi @Barbara Allen-Guthrie

    This relates to the Super Guarantee "Charge" - overdue/late unpaid super that then needs to be remitted via the ATO - not the standard 11% Super.

    On that note though, an Allowance is considered OTE for Super if it is paid regardless of the employee's anticipated expenditure for it (eg employee has complete discretion on whether to spend the Allowance)

    v

    Allowances that are expected to be fully expensed by the employee are not considered OTE

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    [email protected]

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  • Barbara Allen-Guthrie
    Barbara Allen-Guthrie Member Posts: 124 ✭✭

    Thank you Shaz that is helpful 😀

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,314 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    No problem @Barbara Allen-Guthrie - good to hear ☺️

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    [email protected]

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)