Does Super apply when an employee is cashing out Excess Personal/Sick Leave?
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Hi @Kelly7
Most industry awards don't allow sick and carer's leave to be cashed out.
But as you are asking the question I'm going to assume that your employees are covered by one of the two awards that do allow this.
If the award allows for it sick leave is considered as part of the employee's ordinary time earnings (OTE). So the super guarantee contribution does need to be paid on this amount as well.
You might find it helpful to have a read of our Checklist: Salary or wages and ordinary time earnings and also the Fair Work web pages on cashing out sick and carer's leave.
I hope that clears it up for you.
RichATO
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Hi @Kelly7
Most industry awards don't allow sick and carer's leave to be cashed out.
But as you are asking the question I'm going to assume that your employees are covered by one of the two awards that do allow this.
If the award allows for it sick leave is considered as part of the employee's ordinary time earnings (OTE). So the super guarantee contribution does need to be paid on this amount as well.
You might find it helpful to have a read of our Checklist: Salary or wages and ordinary time earnings and also the Fair Work web pages on cashing out sick and carer's leave.
I hope that clears it up for you.
RichATO