Pay Day Super
What is Payday Super?
Payday Super is an Australian payroll requirement that means employers must pay employee superannuation contributions at the same time as wages. This replaces the previous quarterly super payment system and applies to all pay cycles.
When does Payday Super apply to small businesses?
Payday Super applies whenever employees are paid. From the start of the rules, super must be paid on payday rather than quarterly, regardless of whether you run weekly, fortnightly, or monthly payroll.
Do all businesses need to comply with Payday Super?
Yes. Payday Super applies to businesses of all sizes, including small businesses, sole traders with employees, and growing SMEs. If you pay wages, you must also pay super at the same time.
Does my payroll software need to support Payday Super?
Yes. Your payroll software should be able to calculate super correctly and process super payments at the same time as wages. Software that is not properly configured can increase the risk of non‑compliance with ATO superannuation requirements.
What happens if super is not paid on payday?
If super is not paid on payday, businesses may face compliance issues, additional reporting obligations, and potential penalties from the ATO. Payday Super means late super payments are more likely to be identified earlier.
How do I know if my payroll software is compliant?
The best way to know is through a payroll software review. A review checks whether your system is set up correctly, aligned with Payday Super rules, and integrated properly for STP reporting and super payments.
Can I still pay super quarterly under Payday Super?
No. Payday Super replaces quarterly super payments. Superannuation contributions must be paid each time wages are paid, making payroll accuracy more important than ever.
What should small business owners do now?
Small business owners should review their payroll software, confirm that super is paid on payday, and ensure STP reporting aligns with current requirements. Addressing issues early reduces compliance risk and saves time long term.
Use this quick checklist to see whether your payroll system is set up correctly for Payday Super. If you’re unsure about any item below, it may be time for a payroll review.
☐ Super is calculated automatically with every pay run
☐ Super is paid at the same time as wages (not quarterly)
☐ Payroll software is updated for Payday Super requirements
☐ STP reports align with wage and super payments
☐ Super payments are not reliant on manual processes
☐ Payroll integrates with banking and accounting systems
☐ Super payments can be easily tracked each payday
If you need more details, check out the ATO website below.
ATO Pay Day Super