Qualifying Earnings Enhancements

What's changed

We've released a series of enhancements to qualifying earnings (QE) calculations across the payroll platform. These updates are for 26/27 FY dated pay runs onwards and improve accuracy for superannuation guarantee (SG) calculations, redundancy payments, and API support for under-18 employee scenarios.
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Key changes:

Deduction categories — Impact on SG calculations options updated

-The options within the "Impact on SG Calculations" setting on deduction categories have been renamed and expanded. The available options are now No Impact or Reduces Ordinary Time Earnings / Qualifying Earnings.

-When a deduction is set to Reduces Ordinary Time Earnings / Qualifying Earnings, this flows through to the pay run — the deduction will be excluded from qualifying earnings and will also reduce the SG component accordingly. This supports scenarios where a deduction should not form part of qualifying earnings

Learn more about Deduction categories here: Setting up Deductions
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Redundancy payments - Second Type R line now supported

-With this update, users can add a second Type R line specifically for Lump Sum D, and can select whether that line should attract super.

-When reported, the Lump Sum D component (PILON) will have super applied automatically and will be reported as qualifying earnings in line with ATO guidelines.

Learn more about Redundancy payments - Second Type R line here: How do I process type r and type 0 employment termination payments?
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Under-18 employees - Qualifying earnings override now available via API

-We previously released the ability for users to manually override qualifying earnings in non-weekly pay runs for under-18 employees via the UI. This was introduced to account for the system's limitations in accurately calculating qualifying earnings across fortnightly and monthly pay frequencies.

-This functionality has now been extended to the API, enabling integration partners to incorporate the qualifying earnings override into their own systems and workflows.

API Reference - https://api.keypay.com.au/australia/reference/pay-run.html