My employer of 3+ years recently changed payroll system and are now adjusting the hours of site allowance payments. Technically, it doesn't affect my weekly wage and I am paid correctly however it does affect my super guarantee payment. I'd like to know which method is correct, the way it was done in the old payroll system or the way it is done now in new system?
To keep the numbers simple, lets say I work 10 hours per day/50 hours per week in the construction industry in remote WA. My ordinary hourly rate is $45 plus site allowance flat rate of $5 per hour. Ordinary hours are 36 hours. I accrue one RDO day/7.2 hours per fortnight by working 8 hours per day (M-F) and being paid 7.2 ordinary hours and accruing 0.8 hours. I take my scheduled RDO every fortnight and am paid 7.2 hours.
Old system: For the past 3+ years (and also previous employers), my weekly payslip looked like below where the hours matched i.e. ordinary hours (40) = ordinary site allowance hours (40) , OT hours (10) = OT site allowance hours (10) and a deduction for RDO accrual hours (4):
40 ordinary hours x $45 = $1800.00 (s)
10 Time and half x $67.50 = $ 675.00
40 Site allowance ord x $5 = $ 200.00 (s)
10 Site allowance OT x $5 = $ 50.00
-4 RDO accrual x $45 =-$ 180.00 (s)
Super guarantee 11.5% would calculate to $209.30
New payroll system: My new payslip has an adjustment with the site allowance hours. The ordinary site allowance (40-4=36) is reduced by RDO accrual hours (4) and OT site allowance (10+4=14) is increased by the same. The reduction affects super guarantee.
40 ordinary hours x $45 = $1800.00 (s)
10 Time and half x $67.50 = $ 675.00
36 Site allowance ord x $5 = $ 180.00 (s)
14 Site allowance OT x $5 = $ 70.00
-4 RDO accrual x $45 =-$ 180.00 (s)
Super guarantee 11.5% would calculate to $207.00
I would greatly appreciate the correct answer from an expert to my question which method is correct, the way it was done in the old payroll system or the way it is done now in new system?
My thoughts are: Ordinary hours and site allowance are considered OTE. RDO taken payment is considered OTE. If RDO is accrued from ordinary hours, therefore all site allowance ordinary hours can be considered as OTE and an adjustment for RDO accrual hours should not be made.
Please correct me if I am wrong and have simplified it too much.
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