Payday Super (Qualifying Earnings & Annual MCB): What Admins Need to Do

Under the new framework, QE is the base used to calculate and report super to the ATO as STP Code Q.

How it works:

• Any pay category with a super rate greater than 0% is automatically classified as Qualifying Earnings. No configuration is needed.
• Any pay category with a super rate of 0% is automatically excluded from QE.

The "Exclude from qualifying earnings" checkbox:

• Available on pay categories with a super rate greater than 0%.
• Tick this only if the category pays super under an award or EBA on non-ordinary-time hours (e.g., super on overtime).
• When ticked, super liability (Code L) is still reported but the earnings are excluded from QE (Code Q).
• A tooltip on the checkbox explains when this setting should be used.
• The checkbox is not shown on pay categories with a super rate of 0%. Those are already excluded.

Pay category exports now include columns for QE classification and the "Exclude from qualifying earnings" setting.

Steps:

1. Go to Payroll Settings > Pay Categories.
2. Review any categories where super is paid on overtime or under an EBA.
3. Open the category and tick "Exclude from qualifying earnings" where applicable.
4. Save the category.

The new Annual cap replaces the quarterly MCB cap for all pay runs paid on or after 1 July 2026. The system tracks each employee's cumulative ordinary time earnings across the financial year and automatically stops SG contributions once the threshold is reached.

What has changed in the platform:

• A new Annual MCB section appears on the employee Pay Run Defaults page and Pay Rate Template page, alongside the existing quarterly MCB fields.
• The Annual MCB section includes the same controls as the quarterly section: an override toggle (enforce cap / ignore cap) and a custom annual dollar amount field.
• A banner warning on the quarterly MCB fields confirms these apply only to pay runs dated before 1 July 2026.
• When the annual cap is reached, a note appears in the pay run: "The maximum annual super contributions base has been reached and SG amounts have been adjusted accordingly."
• Employees on a Pay Rate Template use the template's annual MCB settings.

Steps - per employee:

1. Go to the employee's record > Pay Run Defaults.
2. Review the existing Quarterly MCB setting.
3. Under the new Annual MCB section, set the override and custom amount to match the employee's requirements as needed.
4. Save.

Steps - Pay Rate Template:

1. Go to Payroll Settings > Pay Rate Templates.
2. Open the relevant template.
3. Under the new Annual MCB section, configure the override and custom amount if required.
4. Save. Changes take effect from the next pay run for all employees on that template.

The 30-hour weekly threshold for super eligibility remains in effect for employees under 18.

• Weekly pay runs: The system automatically determines whether the 30-hour threshold was met. If 30 hours or fewer are worked, QE is reported as zero for that week. No action is required.
• Non-weekly pay runs (fortnightly, monthly): A QE override field is shown on the employee's pay run entry. Enter the correct QE amount manually based on which weeks exceeded the 30-hour threshold.
• If no override is entered, the system uses the system-calculated QE and displays a warning to remind you to verify the amount.
• The QE override field is only shown for employees under 18. It is not visible for employees aged 18 and over.

• STP Pay Event submissions will automatically include Code Q (Qualifying Earnings) and Code L (Super Liability) for pay runs paid on or after 1 July 2026. No additional steps are required.
• STP update events and finalisation events also report QE for the 2026/27 FY onwards.
• The STP YTD report and STP Excel export also include a QE column.

The existing quarterly MCB fields (maximumQuarterlySuperContributionsBase) are unchanged. Existing integrations that only send or read quarterly fields are unaffected — the annual field is additive.