Set up Allowances

Employees are paid double time-and-a-half (2.5) for their partial public holiday hours, but only the ordinary time (1.0) is included in their Ordinary Time Earnings (OTE). The extra time (1.5) is not part of the employee's OTE so it is not included in Superannuation Guarantee (SG) calculations. As a result, you need to set up a separate allowance for the extra/penalty payment.

1. Model the existing ordinary hours allowance.
2. Give the new allowance an appropriate Code and Description.
3. On the Details (i) tab, change Factor to 1.5000.

   

4. On the Details (iii) tab:

   Change Use in Super OTE to No because this allowance is not included in salary or wages.

   Change Use in Super salary or wages to No because this allowance is not used in SG calculations.

   

5. If you use an allowance group for SG calculations, ensure that it does not include this extra/penalty payment allowance.

Topic: 40594