Payday super will require improved payroll processes. Specific factors to consider and flag include:

- Consideration of current timeframe for payment “able to be allocated”

- Manual processes (can these be automated?)

- Treatment of bonus cycle/out of cycle payments

- Current pay cycle frequency

- Current bounce-back processes

- Current process for ATO voluntary disclosures (noting this will change on 1 July)

Payday super will require coordination with stakeholders, such as payroll software providers and even clearing houses. Specific factors to consider include:

- Current SLAs with clearing houses

- Dependencies and timelines with external payroll providers

Getting super paid correctly from day one requires good onboarding practices. Consider current onboarding procedures for:

- Employees

- Contractors

- High-income earners: especially with the MCB changes and if an exemption certificate may be required.

Take the time to compare the definitions of ‘qualifying earnings’ and ‘ordinary time earnings’ and see if the pay code configuration on source systems is correct.

Payday super will also require some changes to STP reporting, as QE is now the base of calculation.

Payday super affects every employer and almost every employee. Keep them up to date in this transitional period between now and 1 July, especially if they want to make changes to their superannuation account. Also consider:

- Special communications for employees affected by the MCB change

- Communications relating to bonuses/commissions and how the MCB could affect that.

Contractors represent hidden and often unknown risk to a business. Ensure that contractors are onboarded promptly and that the internal finance/tax team has a position on whether superannuation is payable for their services.