With payday super now a reality for Australian employers, payroll teams are operating in a far more time sensitive environment. Superannuation contributions are no longer a quarterly clean up exercise, they are directly tied to each pay run.
That shift means payroll processes matter more than ever.
To meet payday super obligations confidently and avoid Superannuation Guarantee (SG) exposure, payroll needs to review, tighten and future proof key processes before each pay cycle.
Below is a practical guide to what payroll should be doing now.
1. Review end to end payroll workflows
Under payday super, super must be calculated and paid at the same time as wages. Any delays, errors or rework in the pay run can now create immediate compliance risk.
Payroll should:
Map the full pay run process from timesheet cut off to super clearing house submission
Identify bottlenecks that delay finalisation
Confirm when super files are generated and transmitted
Ensure there is sufficient time between pay finalisation and bank file release
If your current process leaves super processing until “after payroll”, that approach needs to change. Super must be embedded within the pay cycle, not treated as a separate downstream task.
2. Confirm super calculation accuracy
Now is the time to validate super setup and configuration across your payroll system.
Payroll should check:
Super guarantee is calculated correctly on Ordinary Time Earnings (OTE)
Correct treatment of allowances, bonuses and leave payments
Salary sacrifice arrangements are applied properly
Maximum super contribution base is configured correctly
Super rate updates have been applied
Errors that may have been reconciled quarterly will now create immediate shortfalls and potentially trigger Superannuation Guarantee Charge (SGC) obligations.
A system health check before payday super deadlines become enforceable is essential.
3. Strengthen data integrity controls
Garbage in = non-compliant super out.
Payroll should review:
Super fund details and USIs
Stapled fund compliance processes
Employee TFNs
Date of birth and member numbers
Onboarding workflows to ensure super details are captured correctly
Returned or rejected super payments will create administrative burden and may place employers in breach of timing obligations. Clean data reduces rework and risk.
4. Review clearing house and payment timelines
Many payroll teams rely on clearing houses to distribute super contributions. Under payday super, processing time matters.
Ask:
How long does the clearing house take to validate and forward payments?
Are cut-off times aligned with payroll processing?
What happens if a file is rejected?
Is there visibility over when funds are received by the super fund?
Remember: compliance is tied to when contributions are received by the employee’s fund, not when payroll submits the file.
Build buffer time into your payroll schedule.
5. Align payroll and finance processes
Super payments must be funded at the same time as wages. This means payroll and finance teams need tighter coordination.
Review:
Cash flow planning processes
Approval workflows
Delegations for super payments
Bank file release timing
Segregation of duties controls
If super funding requires separate approval after payroll is finalised, that process may introduce delay risk.
6. Strengthen exception management
Mistakes will happen. The difference under payday super is the timeframe to fix them is much shorter.
Payroll should establish:
A clear escalation pathway for pay errors
A defined process for late adjustments
Controls around off-cycle payments
Documentation protocols
Late super payments will likely trigger SGC exposure, which is non deductible and administratively intensive. Early detection and rapid correction are critical.
7. Update payroll policies and training
Payday super changes the mindset required for payroll operations.
Payroll teams should:
Update internal procedure manuals
Train payroll staff on new time critical controls
Educate managers about cut off discipline
Communicate new expectations to HR and finance
This is not just a compliance shift, it is an operational shift.
8. Conduct a Payday Super readiness review
Before enforcement begins, consider running:
A mock pay cycle review
A super timing stress test
A compliance risk assessment
A system configuration audit
Proactive review is far less costly than retrospective correction.
Payday super moves superannuation from a quarterly obligation to a real time compliance event. For payroll teams, this means tighter processes, stronger controls and greater visibility over end-to-end workflows.
The key question for every payroll function is:
If super had to be paid tomorrow for every pay run, would our current processes hold up?
Now is the time to test them.