21 September 2026
Getting Payday Super right starts with having the right information. We've rounded up some of the most common myths and misconceptions we're hearing from our employers and the ATO, and provided the facts to help you manage contributions correctly and stay on track.
Myth 1: Super should appear in an employee's account on payday
Fact: No. Employers are required to submit Superannuation Guarantee (SG) contributions on payday, but employees won't see the money in their super account that same day. SG contributions must first be processed through your payroll system and clearing house before reaching the employee’s super fund within 7 business days of payday. Once received, super funds must allocate contributions to members' accounts within three business days or return them if they can't be allocated due to missing or incorrect member or payment details. As long as you've submitted the contribution on payday with accurate and complete data, a short delay before it appears in an employee's account is expected.
Myth 2: Qualifying Earnings (QE) is the same as Ordinary Time Earnings (OTE)
Fact: No. While QE and OTE are closely related, they aren't the same thing. QE is a new term introduced under Payday Super and is used to calculate an employee's SG contributions. SG contributions are calculated as 12% of QE. While QE largely aligns with the current OTE rules, it also includes some additional amounts and workers that may not have been captured under the previous framework.
QE generally includes:
- the regular earnings as defined by the current SG rules
- any portion of earnings that an employee has sacrificed for extra superannuation contributions through salary sacrifice.
- earnings paid to workers captured under the expanded definition of employee, including independent contractors paid mainly for their labour.
Myth 3: If there’s an error or rejection, the payment deadline resets
Fact: No. If a contribution is rejected due to missing, incorrect or incomplete information, the clock keeps ticking. You'll need to correct the issue and resubmit the contribution as soon as possible. SG contributions must generally be received by your employees’ super funds within 7 business days of payday. For new employees, and employees who have changed funds, you’ll have a longer timeframe of 20 business days to make their first contribution. Providing accurate contribution data is just as important as paying on time, so don't assume an error gives you a fresh deadline.
Myth 4: If I overpay super, I always need to request a refund
Fact: No. If you accidentally pay more than the required SG amount for an employee, you generally don't need to take any action. Under Payday Super, any excess SG contribution is first applied to any previous unpaid SG obligations for that employee. If there are no previous shortfalls, the excess amount can be carried forward and applied to future SG obligations for the same employee for up to 12 months, provided the required payment timing rules are met.
For example, if an employee's required SG contribution is $120 but you accidentally contribute $220, the extra $100 can generally be used to reduce a future SG obligation for that same employee. If their next SG obligation is $120, you only need to contribute a further $20 to meet the requirement.
A refund is generally only needed if the excess contribution can't be applied to a future SG obligation, such as when the employee no longer works for your business.
Myth 5: Once I submit a contribution, my obligation is met
Fact: Not always. Submitting a contribution doesn't guarantee it's been successfully processed. Contributions still need to pass validation checks and be received by the employee's super fund. If a contribution is rejected or returned due to incorrect or incomplete information, you'll need to correct the issue and resubmit it promptly to help meet your Payday Super obligations.
If your payroll software or clearing house supports Member Verification Requests (MVRs), reviewing the outcomes and acting on any warnings or errors promptly can help identify issues before contributions are affected. Read our article on and learn more about How MVRs can help reduce super contribution errors.
Myth 6: I have to keep chasing new employees for their choice of super fund before I can pay their super
Fact: No. If a new employee doesn't provide their choice of super fund, you still need to meet your SG obligations. The good news is that for new employees you have up to 20 business days to make their first contribution, giving you additional time to obtain and confirm the correct fund details. During this time, you'll need to request their stapled super fund details from the ATO. To identify the super fund your new employee is ‘stapled’ to, refer to the ATO's Request stapled super fund webpage for details. If the employee doesn't have a stapled fund, you can pay contributions into your default super fund. Waiting for an employee to choose a fund may delay contributions and put your Payday Super obligations at risk. The most important thing is ensuring contributions are paid on time to the correct fund based on the information available to you.
Myth 7: Small differences in employee details won't affect a super contribution
Fact: Even small differences in employee details can cause a contribution to fail validation checks or be returned by the super fund. This may include misspelled names, missing hyphens or apostrophes, incorrect dates of birth, outdated addresses, member number errors or incorrect tax file numbers. These discrepancies can prevent the super fund from confirming an employee's identity and allocating the contribution to the correct account. If the employee is a member of AustralianSuper they can use the AustralianSuper mobile app to email you their member number and personal details exactly as recorded by AustralianSuper. Providing accurate and complete employee information can help reduce processing delays, avoid rejected contributions and ensure super is allocated correctly the first time.
Myth 8: If an employee retires and later returns to work, I can keep using their old super fund details
Fact: No. If a former employee returns to work for your business after retiring, you need to treat them as a new employee for super purposes. Employment details, super fund arrangements and personal information may have changed since they last worked for you. Before making contributions, confirm the employee's current super fund details and complete any required onboarding processes. Using outdated information may result in contributions being paid to the wrong fund, rejected, or delayed. Taking the time to capture and verify employee details can help ensure contributions are paid correctly and on time.