Common super calculation mistakes¶

Most super mistakes are not about the sum. The sum is simple — ordinary time earnings (OTE) multiplied by the current rate. The mistakes come from putting the wrong amounts into the OTE total, or using the wrong rate. This lesson walks through the ones that happen most often, why they happen, and the fix for each.

None of these are hard to correct once you know what to look for. Take them one at a time.

In one line

Most super mistakes come from the wrong amounts going into the OTE total, or an old rate — and each one has a simple fix.

Why this matters¶

Super is money you owe on top of wages. Getting the OTE wrong means you pay too little or too much super. Too little can build into a shortfall you have to make good later; too much is money out the door you did not need to spend. Catching these early keeps things simple.

What you will learn¶

The common super-calculation mistakes
Why each one happens
The simple fix for each

Understanding the concept¶

Every mistake below is really the same shape: an amount is in the OTE total when it should not be, or missing when it should be there, or the rate is wrong. Keep that picture in mind and each fix is straightforward.

Mistake 1 — paying super on overtime that is not OTE¶

Overtime payments are not OTE, the ATO explains, as long as the ordinary hours are set out in an award or agreement. A common error is including overtime in the amount super is worked on.

The flip side: if ordinary hours and overtime are all lumped together and never separated, it can be hard to leave the overtime out — and super may be worked on the whole lot by default.

Fix: separate ordinary hours from overtime in your pay records, so overtime can be left out of the OTE.

Mistake 2 — missing super on bonuses, commissions or eligible allowances¶

Some payments do count as OTE and are easy to forget. The ATO explains that commissions, and bonuses connected to ordinary work, are OTE. Some allowances count as OTE too (an allowance that rewards service, rather than one that just reimburses an expense).

Fix: check each bonus, commission and allowance. If it rewards ordinary work or service, it usually belongs in the OTE — do not leave it out.

Mistake 3 — letting salary sacrifice wrongly reduce the SG base¶

When an employee salary sacrifices some pay into super, it is tempting to work the employer super out on the reduced amount. The ATO explains that salary sacrificed super cannot be used to reduce the OTE the employer works super on.

Fix: work the employer super out on the OTE before the salary sacrifice is taken off — the sacrifice does not shrink the base.

Mistake 4 — using an old rate¶

The super rate has stepped up over the years. Using last year's rate means paying too little. The ATO confirms the rate is 12% from 1 July 2025.

Fix: confirm the current rate before a pay run, and update any spreadsheet or saved figure that still uses an older rate.

Mistake 5 — forgetting super on paid leave taken while employed¶

Some people assume super stops while an employee is on leave. The ATO explains that paid leave for ordinary hours — such as annual leave, sick leave or long service leave — is OTE, so super still applies.

Fix: treat paid leave for ordinary hours like ordinary pay for super — include it in the OTE.

For accountants & bookkeepers

These map to OTE inclusion or exclusion under the ATO's OTE guidance. Overtime is excluded where ordinary hours are identified; bonuses connected to ordinary hours, and commissions, are included; genuine expense allowances and reimbursements are excluded while service-based allowances are included; annual leave loading is OTE unless clearly referable to lost overtime. Salary sacrifice cannot reduce the SG base per the ATO's salary-sacrifice guidance. From 1 July 2026 the Payday Super changes move the base to qualifying earnings, so review your pay-item mapping ahead of that date.

Example¶

Priya's Cafe pays Sam ordinary wages, a small bonus and some overtime, and Sam salary sacrifices a little into super (all illustrative). Priya's first draft leaves the bonus out, includes the overtime, and works super on the pay after the sacrifice. That is three of the mistakes above at once. After a check she includes the bonus, leaves the overtime out, and works super on the OTE before the sacrifice — and the figure is now right.

Common mistakes¶

Including overtime in the amount super is worked on.
Leaving bonuses, commissions or eligible allowances out of the OTE.
Letting salary sacrifice shrink the base super is worked on.
Using last year's super rate instead of the current one.
Assuming super stops during paid leave taken while employed.

How this works in myaccountant¶

In the app — myaccountant works super out on each pay automatically, using the pay items that count towards super, so you are not adding up the OTE by hand. It shows the super figure for each employee, and you can review it before you finalise the pay — your chance to catch anything that looks off.

Key points¶

The sum is simple; the mistakes are in what goes into the OTE, or the rate.
Overtime is normally left out; bonuses and commissions are normally in.
Salary sacrifice does not reduce the base super is worked on.
Use the current rate — 12% from 1 July 2025.
Paid leave for ordinary hours still attracts super.

Learn next¶

General information only — not tax, super or financial advice.

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