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Re: Super - OTE - Flat Rate - FIFO - CASUAL

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Hi All

 

Hoping someone help us.

 

Example:

John works for Ball Group as an causal with hourly rate as $60.00 per hour.

John solely works for Ball Group and has done for 10 years.

John works on a project base some may say.

E.g. John has a shutdown on in Darwin and is required in Darwin for 6 weeks straight

Following this 3 weeks off as waiting for next project job - unpaid as causal 

The 6 weeks straight is 

84 hours per week @ $60.00 per hour $5040.00

 

Johns Employer issues pay slip as follows:

Ordinary hours - 40 hours @$60.00 per hour = $2400.00

Overtime hours - 44 hours @$60.00 per hour = $2640.00

Super payable on 40 hours = $2400.00 x 9.5% = $228.00

 

From my understanding super should be paid on ALL hours worked 84 hours because:

Casual

No high rate of pay paid for Overtime hours

John's hours are not consistent and there is no definition or award for ordinary hours

 

John's colleagues have asked his Employer about super not being correct and they have been told like it or leave. Not paying super on all hours.

 

Last year John had 6 months off as there was no work 

He worked 26 weeks x 84 hours per week

26 weeks x 84 hours = 2184 hours x $60.00 = $131,040 x 9.5% = $12448.80

26 weeks x 40 hours = 1040 hours x $60.00 = 62,400 x 9.5% = $5928.00 Super for the year.

 

John was paid $5928.00 in super total for the year. I would like to confirm JOhns Super should it be

 

$5928.00 or $12448.50

 

His Employer is paying all Employees this way and has done for 10 years.

Can John's super be back paid? 

Can John raise Super not being paid without his name coming up? Whistleblower as such?

This would also reduce the Employers Payroll Tax Payable by not paying the correct super.

 

Thanks

 

 

 

 

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ATO Certified

TaxTime Support

Replies 0

Hi @VerAnt

 

Welcome to our community.

 

@ariellead is correct. The answer to this question will ultimately come down to what the award, agreement or contract says.

 

We have a checklist on salary or wages and ordinary time earnings (OTE) on our website that you can have a look at.

 

While overtime payments for casual employees aren't considered OTE, it is interesting that John's overtime rate is the same as their ordinary rate. The three key questions that you need to have answered are:

  • What are the ordinary hours of work for a casual employee in this workplace?
  • What is overtime?
  • What is the rate of pay for overtime?

If John believes that their employer isn't paying their super correctly, we have a page about unpaid super on our website. Depending on the outcome of steps 1 to 4, step 5 provides the option to report the employer for unpaid super.

 

Hope this helps.

 

Thanks,

 

ChrisR

2 REPLIES 2
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Dynamo

Replies 0

Hi @VerAnt 


I'd have to look at the exact contract, award or EBA in order to make a determination of entitlements, each industry has different requirements and then each business may have a different EBA in place which would invalidate the advice, etc.

 

In general:

Super is not paid on overtime - the question here is, what is considered overtime? would need to see the contract.

If 84 hours a week is the normal amount of work, then can 44 hours of that really be considered as overtime pay? That's another question.

There's no sense in making a fuss until the specifics of determining how overtime works in the specific business in question.

Best answer

ATO Certified

TaxTime Support

Replies 0

Hi @VerAnt

 

Welcome to our community.

 

@ariellead is correct. The answer to this question will ultimately come down to what the award, agreement or contract says.

 

We have a checklist on salary or wages and ordinary time earnings (OTE) on our website that you can have a look at.

 

While overtime payments for casual employees aren't considered OTE, it is interesting that John's overtime rate is the same as their ordinary rate. The three key questions that you need to have answered are:

  • What are the ordinary hours of work for a casual employee in this workplace?
  • What is overtime?
  • What is the rate of pay for overtime?

If John believes that their employer isn't paying their super correctly, we have a page about unpaid super on our website. Depending on the outcome of steps 1 to 4, step 5 provides the option to report the employer for unpaid super.

 

Hope this helps.

 

Thanks,

 

ChrisR

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