I have recently left my place of employment and had my TOIL and leave paid out to me.
I noticed I haven't been paid out super on the 8 or so weeks of leave/TOIL that I just got paid out as a lump sum.
If I had instead stayed with the company and taken this leave/TOIL as holiday time off, then I would have had my super paid each week on the weekly amount.
Should I expect that super be paid at 11.5% of this 8 weeks of pay?
Hiya @pattywak0 👋
Ordinary Time Earnings (OTE) is what Super Guarantee (SG) is calculated on. When it comes to leave (not time, I'll cover that next), if you take a paid absence in service or cashout in service, it is OTE, because you are ... in service. But upon termination, the leave balance you have as at your last active day of service is for a future period, where you are no longer employed, so it's not now nor has ever been OTE.
TOIL is not leave, it is time off instead of getting paid overtime. It's different from leave because it is additional work outside of the ordinary hours. If you take the absence in service, it's OTE but if it's cashed out in service, it's overtime (paid at overtime penalty rates). Upon termination, it's an ETP and is not OTE (1. because it's overtime; 2. because it's for a future period).
When you know you're going to leave, it's a good idea to take your leave and time accruals so you benefit from both (typically) tax and (definitely) super.
This is how it has always worked. 🤓
Deanne
Unfortunately, unused leave on termination is not considered ordinary time earnings, so there is no super guarantee on these amounts. Search for "termination payments" on here
Hiya @pattywak0 👋
Ordinary Time Earnings (OTE) is what Super Guarantee (SG) is calculated on. When it comes to leave (not time, I'll cover that next), if you take a paid absence in service or cashout in service, it is OTE, because you are ... in service. But upon termination, the leave balance you have as at your last active day of service is for a future period, where you are no longer employed, so it's not now nor has ever been OTE.
TOIL is not leave, it is time off instead of getting paid overtime. It's different from leave because it is additional work outside of the ordinary hours. If you take the absence in service, it's OTE but if it's cashed out in service, it's overtime (paid at overtime penalty rates). Upon termination, it's an ETP and is not OTE (1. because it's overtime; 2. because it's for a future period).
When you know you're going to leave, it's a good idea to take your leave and time accruals so you benefit from both (typically) tax and (definitely) super.
This is how it has always worked. 🤓
Deanne
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