Payday Super for Accounting Firms: What Changes for Payroll Preparation
Payday Super changes payroll preparation in three ways: super is calculated on qualifying earnings, paid each payday so it reaches the fund within 7 business days, and reported through STP every pay run. Firms need new pay-run timing, mapping checks and error handling.
New to the payroll side? See our guide to offshore payroll and STP support for Australian firms
Key Takeaways
Super now follows every payday: It must reach the fund within 7 business days, with longer windows for new employees.
Qualifying earnings replace OTE as the base: Check pay code mapping for every payroll client.
STP carries more: Report year-to-date qualifying earnings and super liability on each payday, and expect rejection of reports that omit them from 1 July 2027.
Error handling is the new workload: Rejections come back within 3 business days, so pay on payday and keep an exceptions log.
The ATO’s first-year approach rewards timely payment and quick fixes.
Offshore teams prepare, and the employer approves.
What Actually Changed on 1 July 2026?
Payday Super replaced quarterly super payments with a payment cycle tied to every pay run. According to the ATO, employers now pay super guarantee for each payday, and contributions are due in employees’ super accounts within 7 business days after payday, unless a longer period applies, such as for new employees.
The Small Business Superannuation Clearing House has closed, so clients who used it needed to switch to another provider.
Quarterly super (to 30 June 2026) | Payday Super (from 1 July 2026) | |
Payment timing | Once a quarter, by the quarterly due date | Each payday, received by the fund within 7 business days |
Calculation base | Ordinary time earnings | Qualifying earnings |
STP reporting | OTE or super liability | Year-to-date qualifying earnings and year-to-date super liability on each payday |
Clearing house | Small Business Superannuation Clearing House available | Closed, so another provider is needed |
Rejected payments | Found at or after quarter end | Funds have 3 business days to allocate or return a payment that can’t be allocated |
The 20-business-day window for a new employee’s first contribution comes from the Fair Work Ombudsman’s summary of the new rules.
How Does Payroll Preparation Change?
Eight parts of your pay-run process need attention:
Move the super step to payday: The ATO’s own worked example shows an employer deciding to pay super on payday rather than after it, so there is time to resolve errors inside the 7 business days.
Calculate on qualifying earnings: The base is now qualifying earnings, applied to payments from 1 July 2026, even where the work was done before that date.
Check pay code mapping: The ATO tells employers to review STP software and map pay codes correctly, so each payment feeds the right qualifying earnings figure. Our guide to common challenges when migrating to an offshore STP platform covers mapping and setup problems in more detail.
Report both figures in STP: Each payday’s report includes year-to-date qualifying earnings and year-to-date super liability.
Confirm the payment path: Ask the clearing house how long processing takes, whether it uses the New Payments Platform, and where error messages appear.
Plan for rejections: A fund has 3 business days to allocate or return a payment, so a late payment leaves little time to fix and resend.
Handle new employees and new funds: These cases carry a longer first-payment window, so flag them in your checklist rather than treating them like the standard cycle.
Forecast the cash: Super leaves the business every pay cycle, so clients need funds set aside for it alongside wages.
What Needs to Be Reported in STP?
From 1 July 2026, employers report year-to-date qualifying earnings and year-to-date super liability for each employee on every payday. The ATO says employers who can’t report these amounts from 1 July should start as soon as possible after that date, and they don’t need a deferral if they can start during 2026–27.
From 1 July 2027, the ATO will reject reporting that omits them, and penalties may apply. Check each client’s software now, because mapping gaps are far easier to fix months before that date.
If a client’s software needs changing, our guide to accounting software for outsourced payroll in Australia compares the options.
Which Errors Cause Late Super?
Payments fail for a handful of predictable reasons, and the ATO lists the most common:
Incorrect unique superannuation identifier or member number
ABN mismatch
Incorrect fund details
Inactive electronic service address for self-managed super funds
Incorrect contribution amounts
Speak with the payroll provider about the member verification request, which lets software check an employee’s fund details before a contribution goes out. Use it for first-time payments, changed employee details and previously rejected contributions.
How Does the ATO Treat Errors in the First Year?
The ATO has published a compliance approach for the first year. Employers won’t be the focus of compliance action if they make payments for each payday on time and fix errors as soon as possible.
The ATO will take a firmer approach to serious or deliberate non-compliance, and to employers who don’t attempt to pay for each payday. A documented exceptions process, with a record of when each error was found and fixed, supports that position.
What Should a Firm Change Beyond the Pay Run?
Update the pay-run calendar for every payroll client: Include a super step on payday and a check inside the 7 business days.
Review engagement letters and scope: Payroll now involves more frequent tasks, such as monitoring payments, resolving rejections and checking STP figures, so make sure the scope matches the work. Our strategic guide to outsourced payroll for accounting firm owners covers how firms scope payroll services.
Agree who approves: Clarify who authorises each pay run and super payment, since the employer remains responsible for compliance.
Brief clients on employee questions: The ATO suggests telling employees that super is paid every payday, still appears on payslips, and may take a few days to show in their account.
Watch the contributions cap: The ATO notes the concessional contributions cap is $32,500 for 2026–27, and that announced changes aimed at avoiding unintended cap breaches from Payday Super are not yet law.
Check payroll against the BAS: Wages and PAYG withheld on the BAS (W1 and W2) should reconcile to your STP reports, so line up your pay-run calendar with the quarterly due dates in our BAS quarter guide for FY2026–27.
Client Readiness Checklist
Use the ATO’s Payday Super checklist for employers alongside this firm-level list:
Payroll software maps pay codes to qualifying earnings
STP reports include year-to-date qualifying earnings and super liability
The client has an alternative to the closed clearing house
Clearing house processing times and error locations are known
Super is paid on payday, with time to fix errors
New employees and new funds are flagged for the longer first-payment window
Cash for super is set aside each pay cycle
An exceptions log records each error, the fix and the date
Can an Offshore Team Prepare Payday Super Payroll?
Yes, preparation can move offshore, while approval and release stay with the employer or registered agent, the same boundary covered in our guides to offshoring GST return preparation and choosing an offshore STP provider.
Task | Offshore team | Employer or registered agent |
Checking pay code mapping and QE calculations | ✔ | |
Preparing super payment files | ✔ | |
Preparing STP data, including year-to-date QE and super liability | ✔ | |
Monitoring rejections and preparing corrections | ✔ | |
Maintaining the exceptions log | ✔ | |
Approving pay runs and authorising super payments | ✔ | |
Deciding how to resolve disputes and unusual cases | ✔ | |
Answering ATO queries | ✔ |
Offshore work still needs supervision. The Tax Practitioners Board expects registered practitioners to keep adequate control over outsourced work, and under APP 8 you remain accountable for how an overseas team handles client payroll data. For budgeting, see what outsourcing STP offshore costs.
BOS Resources supports firms with this model. Team members bring a minimum of one year’s direct experience working with Australian businesses, work Australian business hours, and operate inside your clients’ payroll software from a secured, dedicated office in Jakarta, so same-day error checks fit inside the 7-business-day window.
Our offshore accounting security guide explains what to ask about data protection, and our onboarding guide walks through the first weeks.
Conclusion
Payday Super turns super from a quarterly task into part of every pay run. For accounting firms, the work changes in four places: pay-run timing, qualifying earnings mapping, STP reporting and error handling. Firms that build those steps into a repeatable checklist, and keep approval with the employer or registered agent, will handle the new cycle with fewer surprises.
Need Help With Payday Super Payroll Preparation?
If your firm needs extra capacity for pay-run checks, STP preparation and rejection monitoring across your payroll clients, it’s worth talking through what that could look like. Get in touch with BOS Resources to explore your options.
See how our offshore accounting services work, or read how small firms break the capacity bottleneck.
Frequently Asked Questions
What changes for payroll preparation under Payday Super?
Super is paid with each payday so it reaches the fund within 7 business days, calculated on qualifying earnings, and reported through STP on every pay run. Preparation needs a super step on payday, pay code mapping checks, error monitoring and a record of fixes.
What do employers report in STP under Payday Super?
Each payday’s STP report includes year-to-date qualifying earnings and year-to-date super liability for every employee. The ATO asks employers who can’t report these yet to start as soon as possible, and from 1 July 2027 it will reject reporting that leaves them out.
How long do employers have to pay super under Payday Super?
Super must be received, with enough information to be allocated, within 7 business days after payday. New employees get longer for the first payment. Paying on payday leaves more time to fix errors, because funds have 3 business days to allocate or return payments they can’t match.
What happens if a super payment is rejected?
The fund returns it within 3 business days, and the employer needs to correct the error and resend inside the 7-business-day window. The ATO’s first-year compliance approach says employers who pay on time and fix errors quickly won’t be the focus of compliance action.
Can an offshore team prepare Payday Super payroll?
Yes, an offshore team can check QE calculations, prepare payment files and STP data, and monitor rejections. The employer or registered agent approves pay runs and authorises payments, and the employer stays responsible for compliance.
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