Payday Super Three Months In: 8 Payroll Mistakes Construction and Solar Employers Are Making

Payday Super started on 1 July 2026. Three months in, most construction and solar businesses have changed their pay runs, but a lot of payroll settings and habits are still running on the old quarterly rules.

If you missed the basics, our earlier guide on Payday Super for construction, EPC and solar employers covers what changed. This one is about the mistakes we're seeing now, and how to fix them while the ATO is still taking a softer line.

The rule in one paragraph

For earnings paid from 1 July 2026, super has to be received by the employee's fund within 7 business days of the day you pay them, with the details the fund needs to allocate it. The ATO calls that payday the QE day, short for qualifying earnings. The super guarantee rate is 12% of qualifying earnings. The ATO's own example: pay on Monday 6 July 2026, and the super is due in the fund by 15 July 2026.

1. Counting 7 days from when the money leaves your account

The test is when the fund receives the contribution, not when you send it. Commercial clearing houses and payroll software often take a few days to pass money on. If you pay super on day 6, it can easily land on day 9. The ATO recommends paying super on payday, and that's the habit to build.

2. Forgetting about other states' public holidays

A business day excludes weekends and any public holiday that covers a whole state or territory, even if you don't operate there. So a holiday interstate can stretch the due date, but only if it applies to the whole of that state. A holiday that only covers part of a state still counts as a business day. Let the payroll system work out the date rather than counting by hand.

3. Using 20 business days for everyone

New employees get longer. The first contribution for a new starter, or to a new fund after an employee switches, has to arrive within 20 business days of the QE day. After that first one, the normal 7 business days applies. We're seeing businesses treat 20 days as the standard, which puts every later contribution late.

4. Getting bonuses and back pay wrong

Out-of-cycle payments, such as bonuses, commissions, allowances, back pay and pay in advance, have their own rule. The super on them is due within 7 business days of the next regular payday. That's handy for an end-of-project bonus paid mid-cycle, but only if your payroll system knows it's out of cycle. Irregular paydays, such as workers paid on invoice, aren't out of cycle, so the normal 7 days applies.

5. Missing contractors who count as employees for super

The ATO says the 12% applies to employees, including eligible contractors. In construction and solar install work, a lot of individual subbies who are paid mainly for their labour can fall into that group. If they're set up as suppliers in your accounts, nobody is calculating super on each payment. Check your regular individual contractors against the ATO's employee or contractor guidance.

6. Leaving salary sacrifice out of the calculation

Qualifying earnings include salary sacrifice amounts that would have counted if they hadn't been sacrificed. If an employee sacrifices part of their wage into super, your 12% is worked out on the earnings before the sacrifice. Payroll settings carried over from the old rules don't always do this.

7. Assuming a rejected payment stops the clock

When a fund sends a contribution back, usually because of a wrong member number or fund details, the deadline doesn't reset. The ATO says the timeframe "does not reset or extend because there were errors". Someone needs to check returned contributions every pay cycle and fix them that week, not at the end of the quarter.

8. Still relying on the Small Business Superannuation Clearing House

The ATO's free clearing house closed from 1 July 2026. If you used it, you now need payroll software or a commercial clearing house that can pay every pay cycle. Make sure your old records were downloaded and stored with your payroll files.

What happens if super is late

If a contribution arrives late, you may owe the super guarantee charge. Paying late can reduce the charge, but the interest and administration components can still apply. The ATO has issued a compliance guideline for the first year: employers who pay for each payday and fix errors quickly aren't expected to be the focus, but it says it will take a firmer line with employers who aren't trying to pay each payday.

The cash flow side

For a builder paying weekly wages, super now goes out every week instead of four times a year. That's a permanent change to your cash profile, and it lands right when progress claims are slow to come in. Put weekly super into your cash forecast as its own line, next to wages and PAYG withholding.

A quick check for this week

• Pick your last three pay runs and compare each payday to the date each fund received the super.

• List new starters since 1 July and check their first contribution arrived within 20 business days.

• Check your individual subbies against the ATO's employee or contractor guidance.

• Confirm salary sacrifice is being added back before super is calculated.

• Check for any returned contributions and fix them.

Talk to a CPA

TechEdge is a CPA-led outsourced finance team for Australian construction, civil, EPC, solar and renewables businesses. We review payroll and super as part of our Finance Manager and Financial Controller engagements.

Book a free 30-minute call with a CPA, email info@techedgeaccounting.com.au or call +61 468 634 973.

This article is general information only and is not financial, tax or legal advice. It reflects the ATO's published Payday Super guidance as at 9 October 2026. Check the ATO website or speak to your adviser about your own circumstances.