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BRoost(Newbie)Newbie
8 July 2022

 

Hi,

My enquiry is in relation to Incentive Bonuses, are we obliged to pay SGA on Bonuses?

We have two incentive bonus's we wish to offer our staff. They do not form part of our existing employment agreements.

Bonus A - for reaching Sales Targets, a flat rate payment available once a month if KPI is reached. Bonus B - is available when we have a back log of work, our trades people will be offered the opportunity to work 20 hours overtime or more and they are paid a bonus percentage on total hours worked for that period. We will pay SGA on all hours worked, just questioning if we need to pay super on the percentage bonus amount.


Appreciate your assistance.


4,452 views
1 replies
4,452 views
1 replies

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Most helpful replyATO Certified Response

RenATO(Community Support)Community Support
ATO Certified Response10 July 2022

Hi @BRoost,


SG is payable on Bonus A - performance based, not on Bonus B - Bonus in respect of overtime only.


We have a handy table available under List of payments that are ordinary time earnings, which will assist you to determine which payments are counted as salary and wages for super guarantee purposes, in particular for bonuses.


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Most helpful replyATO Certified Response

RenATO(Community Support)Community Support
ATO Certified Response10 July 2022

Hi @BRoost,


SG is payable on Bonus A - performance based, not on Bonus B - Bonus in respect of overtime only.


We have a handy table available under List of payments that are ordinary time earnings, which will assist you to determine which payments are counted as salary and wages for super guarantee purposes, in particular for bonuses.


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