Employer returns

How to calculate ordinary wages

Below is a list of what to include (and exclude) when calculating ordinary gross wages for your workers.

Ordinary wages include:Ordinary wages do not include:
    • award and over-award wage payments
    • weekend penalty rates
    • public holiday penalty rates
    • first aid, shift, 'on call', leading hand, sleepover, refuse collection and toilet cleaning allowances
    • annual leave (taken as leave)
    • sick leave (taken as leave)
    • long service leave (taken as leave)
    • employer paid maternity/ paternity/parental leave
    • bereavement leave
    • personal/carer's leave
    • casual loading
    • employer paid worker's compensation payments
    • jury service
    • salary sacrifice deductions
    • other payments made by agreement
    • overtime payments
    • expense related allowances for equipment, materials, protective clothing or motor vehicle provided by the worker
    • leave loading
    • Christmas bonuses and ex-gratia payments
    • lump sum termination payments including accrued annual leave, sick leave or long service leave and payments in lieu of notice
    • superannuation
    • redundancy payments
    • worker's compensation payments paid directly to the worker by WorkCover or an insurance company (and not by the employer)
    • Commonwealth Paid Parental Leave
Please note: Declared wages for an ABN worker is the invoiced amount (excluding materials) before GST.

Things to note:

  • declared wages for an ABN worker is the invoiced amount (excluding materials) before GST
  • we do not issue refunds for levies once they are paid, so it's important you check to ensure you've reported the correct gross ordinary wages for all your workers and that your invoice is correct before paying it
  • if you believe your invoice is inaccurate before you've paid
  • when completing your return and calculating the annual rate of pay, enter the worker's hourly rate of pay (including all applicable amounts outlined under ordinary wages) x 38 hours x 52 weeks. Do not enter any symbols (e.g. '$') or use decimal places

Contact us for more information.