From Quarterly Compliance to Continuous Compliance Under Payday Super, employers must: Calculate SG accurately at each pay event Apply SG to Ordinary Time Earnings (OTE) Transfer funds via SuperStream- compliant systems Reconcile payroll outputs with super payments in near real time Align treasury funding with payroll execution This is no longer a quarterly reconciliation exercise. It becomes a continuous compliance function. Superannuation shifts from an end-of-cycle task to an embedded payroll control. Once funding becomes real-time, failure is no longer an accounting delay, it becomes an internal control failure. Where the Real Risk Sits 1. Liquidity and funding precision Quarterly payments allowed flexibility in working capital. Under
per-pay funding, super must be funded weekly or fortnightly. For high-volume employers, this tightens treasury discipline. Delays between payroll finalisation and fund transfer increase exposure. For multinational organisations, this may require redesigning centralised funding models. Real-time compliance demands real-time cash alignment. 2. OTE interpretation and configuration risk Super is calculated on Ordinary Time Earnings (OTE), but applying OTE in award or enterprise agreement environments is rarely straightforward. Risk commonly arises from: Incorrect treatment of overtime Misclassification of allowances and loadings Confusion between reimbursements and earnings System misconfiguration Under a quarterly model, misclassification may affect one cycle and be corrected later. Under Payday Super, it repeats every pay cycle. Automation is not the solution. Poorly governed automation scales error.
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ISSUE 23 GLOBAL PAYROLL MAGAZINE
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