Double Time and Quarter Explained (System Default Pay Rate)
Sep 26, 2024
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🎯 The reporting of payments for Double Time and Quarter are now disaggregated per the Australian Taxation Office Single Touch Payroll Phase 2 guidance. Rather than being included in Gross, Double Time and Quarter is 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.
Double Time and Quarter is applicable when the Payee is entitled to loading on their standard rate of pay as they are required to work overtime or on a particular day of the year (such as a weekend).
For example, under the Sugar Industry Award 2020 [MA000087]. The Full Time or Part Time Payee is entitled to be paid 225.00% of their ordinary hourly rate for the time they work on a weekend.
Double Time and Quarter uses the Rate Per Hour set in the Payee Master File multiplied by 2.25 (225.00%) and Leave Entitlements are not applicable. Payments with this pay type are considered to be W1 (Total of Salary, Wages & other payments) and Taxable, however, they are not Ordinary Time Earnings (OTE).
