Time and Half Explained (System Default Pay Rate)

Aimee Slatter

Sep 25, 2024

1236

🎯 The reporting of payments for Time and Half are now disaggregated per the Australian Taxation Office Single Touch Payroll Phase 2 guidance. Rather than being included in Gross, Time and Half 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.

Time and Half is applicable when the Payee is entitled to loading on their standard rate of pay as they are required to work overtime or on a particular day of the year (such as a weekend).

For example, under the;

General Industry Retail Award [MA000004]. The Payee is entitled to be paid 150.00% of their ordinary hourly rate for the first 3 hours of overtime they work Monday to Saturday.
Mining Industry Award 2020 [MA000011]. The Payee is entitled to be paid 150.00% of their ordinary hourly rate for the first 3 hours of overtime they work Monday to Saturday.
Clerks - Private Sector Award 2020 [MA000002]. The Payee is entitled to be paid 150.00% of their ordinary hourly rate for the first 2 hours of overtime they work Monday to Saturday.
Pharmacy Industry Award 2020 [MA000012]. The Payee is entitled to be paid 150.00% of their ordinary hourly rate for the first 2 hours of overtime they work Monday to Saturday.

Time and Half uses the Rate Per Hour set in the Payee Master File multiplied by 1.50 (150.00%) 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).