Where a termination payment is made to an employee outside of their regular pay cycle under payday super, is the SG due date 7 business days after the out of cycle payment or the next regular payday?
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G'day @Brissy90 👋
Firstly, we have to wait for the Legislative Instrument to define which payments are considered "out of cycle". It isn't any payment.
Secondly, although the ATO guidance is poor 😩 the Explanatory Memorandum to the legislative change for Payday Super, paragraph 1.62 on out-of-cycle payments states:
However, if there are no further QE days for which the employee is paid qualifying earnings that are not out-of-cycle, then this extension does not apply.
In other words, if the termination payment is out-of-cycle then SG is due 7 business days after that out-of-cycle pay 🤓
Best to read the EM rather than the scant outline that is ATO guidance for Payday Super 😉
Deanne