Directors' Fees Explained (System Default Pay Rate)
Sep 26, 2024
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🎯 The reporting of payments for Directors' Fees are now disaggregated per the Australian Taxation Office Single Touch Payroll Phase 2 guidance. Rather than being included in Gross, Directors' Fees are now reported separately under Overtime.
🎯 If you are unsure if this Pay Type applies to your circumstances, please refer to the Payee's Employment Contract or obtain advice from either the Australian Taxation Office or Fair Work Ombudsman.
Directors' Fees are applicable when the Payee requires compensation for services performed as a Company Director. In certain circumstances, a Director may also receive Ordinary Time.
Directors' Fees use the $ (or % of Rate Per Hour) set within the Pay Rate and Leave Entitlements are not applicable. Payments with this pay type are considered to be W1 (Total of Salary, Wages & other payments), Taxable and Ordinary Time Earnings (OTE).
