Casual Loading Explained (System Default Pay Rate)
Sep 26, 2024
1074
🎯 The reporting of payments for Casual Loading are now disaggregated per the Australian Taxation Office Single Touch Payroll Phase 2 guidance. Rather than being included in Gross, Casual Loading 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.
Casual Loading is applicable when the Payees Employment Status is Casual. This Pay Type is used in conjunction with Overtime Pay Types as per the Fair Work Ombudsman Pay Slips guidance.
For example, under the following Awards, the Payee is entitled to be paid 25.00% of the minimum hourly rate for being employed as Casual.
Casual Loading uses a portion of the Rate Per Hour set in the Payee Master File (25.00%) 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).
