Payroll Configuration Guide

Qualifying Earnings Configuration Guide

CrewCard now supports the configuration of Qualifying Earnings across multiple payroll components to assist employers in meeting their Superannuation Guarantee obligations and supporting accurate Single Touch Payroll reporting.

View Overview See Configuration Steps
Key Reminder

Qualifying Earnings may affect

Super & STP Reporting

Employers remain responsible for checking that their setup matches Awards, Enterprise Agreements, contracts and ATO requirements.

Overview

This guide explains what Qualifying Earnings are, how they relate to Superannuation and STP, how to configure them within CrewCard, and the three locations where they can be configured.

Rules
Pay rate configuration
Direct Payments
Manual payment configuration
Allowances
Default allowance treatment

Understanding Qualifying Earnings

Qualifying Earnings are earnings that are included when calculating an employee’s superannuation entitlement.

In Australia, employers are generally required to pay Superannuation Guarantee (SG) contributions on an employee’s earnings. While Ordinary Time Earnings (OTE) form the basis of most super calculations, certain Awards, Enterprise Agreements, or employment contracts may require superannuation to be paid on additional earnings.

May Be Qualifying
  • Ordinary hours
  • Shift penalties
  • Certain allowances
  • Casual loadings
  • Other award-specific earnings
May Not Be Qualifying
  • Certain overtime payments
  • Expense reimbursements
  • Non-superable allowances
  • Other excluded payments
Important

Because superannuation obligations vary between industries, Awards, and agreements, CrewCard allows employers to determine whether specific earnings should be treated as Qualifying Earnings.

Relationship Between Qualifying Earnings, STP and Superannuation

When payroll is processed, CrewCard identifies earnings that have been marked as Qualifying Earnings.

These earnings are then used to:

1
Calculate Qualifying Earnings Year-to-Date (Q YTD) values.
2
Determine Superannuation Guarantee (SG) obligations where applicable.
3
Support accurate payroll reporting through STP.

Correct Configuration Helps Ensure

  • Accurate superannuation calculations.
  • Compliance with Award and Enterprise Agreement requirements.
  • Accurate STP reporting to the Australian Taxation Office (ATO).
Incorrect configuration may result in:
Underpayment of superannuation, overpayment of superannuation, payroll reconciliation issues, and compliance risks.

Where Can Qualifying Earnings Be Configured?

CrewCard allows Qualifying Earnings to be configured in three areas.

Location Purpose
Rules Controls whether a pay rate contributes to Qualifying Earnings and Super calculations.
Direct Payments Controls whether a manually entered payment contributes to Qualifying Earnings and Super calculations.
Allowances Controls the default Qualifying Earnings treatment for an allowance whenever it is used.

Section 1: Configuring Qualifying Earnings on Rules

Navigation

Payroll → Rules → Live Rules

A new Qualifying Earnings column is available on the Rules page.

How It Works

Each pay rate can be configured as either:

  • Qualifying Earnings = Yes
  • Qualifying Earnings = No

To Configure a Rule

1
Open the appropriate Rule Group.
2
Locate the pay rate to be configured.
3
Find the Qualifying Earnings column.
4
Tick the checkbox if the rate should contribute towards Qualifying Earnings.
5
Leave the checkbox unticked if the rate should be excluded.
6
Save or upload the updated rule configuration.
Rate Type Qualifying Earnings
Ordinary Hours Yes
Casual Loading (where superable) Yes
Shift Penalty (where superable) Yes
Overtime Depends on Award Requirements
Expense Reimbursement No

Section 2: Configuring Qualifying Earnings on Direct Payments

Navigation

Payroll → Direct Payments → Add Payment

Direct Payments allow payroll administrators to manually create payments such as allowances, reimbursements, bonuses, and payroll adjustments.

How It Works

When creating a Direct Payment, the system displays an Allowance Settings section that may include:

  • PAYGW Withholding
  • Qualifying Earnings
  • Superannuation Guarantee Contribution (SGC)

To Configure a Direct Payment

1
Select the Business.
2
Select the Employee.
3
Select the Payroll Week.
4
Select the appropriate ATO Category.
5
Review the Allowance Settings section.
6
Tick or untick Qualifying Earnings as required.
7
Enter the payment details.
8
Click Save.
Checked

The payment contributes to the employee’s Qualifying Earnings Year-to-Date (Q YTD).

Unchecked

The payment is excluded from Qualifying Earnings calculations.

Example

A Tool Allowance entered as a Direct Payment may need to be included in Qualifying Earnings depending on the applicable Award.

Section 3: Configuring Qualifying Earnings on Allowances

Navigation

Payroll → Allowances → Add/Edit Allowance

Allowances can be configured globally and reused throughout the system.

How It Works

The Allowance setup screen includes payroll treatment options such as:

  • Qualifying Earnings
  • Superannuation
  • PAYG Withholding
  • Reportable

The Qualifying Earnings setting acts as the default treatment whenever the allowance is applied.

To Configure an Allowance

1
Create a new allowance or edit an existing allowance.
2
Enter the allowance details.
3
Locate the payroll treatment options.
4
Tick the Qualifying Earnings checkbox if the allowance should contribute to Qualifying Earnings.
5
Save the allowance.
Checked

The allowance is treated as a Qualifying Earning and contributes to Q YTD totals.

Unchecked

The allowance is excluded from Qualifying Earnings calculations.

Example

A First Aid Allowance may need to be treated as a Qualifying Earning under the applicable Award.

Important Notes

System Configuration

CrewCard provides the ability to configure Qualifying Earnings but does not automatically determine whether a payment should be qualifying or non-qualifying.

Employer Responsibility

Employers remain responsible for ensuring their configuration aligns with Applicable Awards, Enterprise Agreements, Employment Contracts and ATO requirements.

Professional Advice

We recommend consulting your payroll specialist, accountant, or industrial relations advisor if you are unsure how a payment should be classified.

Summary

Qualifying Earnings determine which earnings contribute to an employee’s qualifying earnings totals and may impact superannuation calculations and STP reporting.

CrewCard provides flexibility by allowing Qualifying Earnings to be configured across Pay Rates (Rules), Direct Payments and Allowances.

This ensures that all earnings types can be correctly classified according to your Award obligations and payroll requirements, helping maintain accurate Superannuation Guarantee calculations and STP reporting.