Ordinary time earnings
Ordinary time earnings (OTE) are used to calculate your employees’ Superannuation Guarantee (SG) contribution payments and are generally what your employees earn for their ordinary hours of work, including:
- Over-award payments
- Paid leave.
Overtime is not generally included, even if someone regularly works overtime as part of their job.
If you don’t pay the right amount of super for each of your employees, you’ll be liable to pay the Superannuation Guarantee charge, which includes interest and an administration fee.
To find out more, see the Australian Tax Office’s checklist for salary or wages and ordinary time earnings.
By law, you’re required to keep records that clearly show the amount of super you paid each employee and how you worked out that amount. You can use any method that suits you to keep your records, providing:
- You keep your records for five years
- Your records are kept in English, or a form that can be easily accessed and converted to English
- That if you keep electronic records, you use software that’s broadly available and can read older floppy disks, CDs and computer records.