Updating your Work Types with ‘is QE’ flag (previously OTE)

1.  Go to Payroll → Maintenance > Work Types.

2. 


Confirm that all Work Types items are correctly flagged as ‘QE’ in accordance with the ATO requirements.

 

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Please note that if your work type(s) is incorrectly flagged as ‘QE’ and the field is ‘disabled’ you may need to create a new work type to replace it and then apply that work type to all employee timesheet records where applicable.

 

3.  Confirm that all non-QE Work Types items are NOT flagged as ‘QE’ in accordance with the ATO requirements

4.  Confirm that all Salary Sacrifice Work Types items are correctly NOT flagged as ‘QE’ in accordance with the ATO requirements

 

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Qualifying Earnings (QE) has been introduced in STP as part of Pay Day Super, with earnings now determined based on the employee’s Work Types and Allowances that are flagged as ‘QE’.

Salary Sacrifice work types that reduce gross income for tax calculations should not be flagged as “QE.” This ensures that any contributions calculated under Option 1 – Percentage of Gross are based on the gross amount before any reduction. It also prevents the salary sacrifice amount (negative) from reducing the Qualified Earnings value.