impacted too because the earnings base wasn’t right. Today it’s Ordinary Time Earnings (OTE), from 1 July 2026 it’s Qualified Earnings (QE). But regardless of the base, timing rules matter. You can still end up in the SGC regime, which means an SGC statement, penalties, and more admin than anyone deserves. And don’t forget Payday Super changes which tighten the screws even more. From 1 July 2026, SG must hit the fund within seven business days of payday. Plus, employers must report year-to-date QE and super liability through STP every single payday. That means remediation programs spanning different time periods need to know which rules applied when. Incorrect timing is one of the easiest SG traps to fall into, given the surrounding complexity of ATO guidelines. Remember, fixing the pay isn’t enough; there’s also STP creating new challenges where you have to fix the data trail. Employers have 14 days from finding an error (or until the next pay if cycles are longer) to correct it. And if the remediation includes back payments, and Lump Sum E you need to approach cautiously.
Late or messy amendments are among the most common
reasons state revenue authorities start asking questions.
From 1 July 2025, every amount that qualifies must be reported as Lump Sum E, no matter the value and under STP, you need to tag the right financial years. STP feeds myGov, and anything inaccurate flows straight into the employee’s tax return. If the numbers are wrong, your first complaint might not be from the ATO, it could be from confused employees at tax time. Next, Payroll tax often catches people off guard because every state handles timing differently. Amendments can be monthly or annual, depending on the jurisdiction, and if your historical location data isn’t clean, you may need to reapportion wages too. Grouping and nexus rules also come into play, and penalties and interest can add up quickly. Late or messy amendments are among the most common reasons state revenue authorities start asking questions. The last thing you want is to receive a
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ISSUE 21 GLOBAL PAYROLL MAGAZINE
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