Can someone please provide me with clarification? When you have terminated an employee and you are working out final payout, are you required to pay Super guarantee on Long Service Leave entitlement?
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Hiya @DieselMum 👋
The ATO SGR 2009/2 defines what is ordinary time earnings that is used to calculate the employer super guarantee. As per paragraph 24:
24. Specifically excluded from the definition of OTE in subsection 6(1) is a lump sum paid to the employee on the termination of his or her employment, being:
• a payment in lieu of unused sick leave; or
• an unused annual leave payment or unused long service leave payment within the meaning of the Income Tax Assessment Act 1997.
No is the short answer 😉
The only termination payment that is subject to super guarantee on termination is any payment in lieu of notice (see para 38 in SGR 2009/2)
Deanne
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Hiya @DieselMum 👋
The ATO SGR 2009/2 defines what is ordinary time earnings that is used to calculate the employer super guarantee. As per paragraph 24:
24. Specifically excluded from the definition of OTE in subsection 6(1) is a lump sum paid to the employee on the termination of his or her employment, being:
• a payment in lieu of unused sick leave; or
• an unused annual leave payment or unused long service leave payment within the meaning of the Income Tax Assessment Act 1997.
No is the short answer 😉
The only termination payment that is subject to super guarantee on termination is any payment in lieu of notice (see para 38 in SGR 2009/2)
Deanne