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Why Accurate Mapping of On-Call and Overtime Matters for Payroll Compliance

 

How to Map On-Call, Recall and Overtime Hours Correctly in STP Using ClockOn

Accurate mapping of on-call, recall and overtime hours is essential for Australian payroll compliance. Under Single Touch Payroll (STP) Phase 2, every pay component must be reported under the correct ATO category to avoid errors or misclassification penalties.

Payroll software like ClockOn simplifies this process by allowing each allowance or pay condition (such as on-call or recall) to be separately coded and linked to its correct STP field.

How ClockOn Classifies On-Call, Recall and Overtime Pay Automatically

ClockOn’s award interpreter automatically classifies hours according to your configured modern award or enterprise agreement. This means time entries such as after-hours call-backs, stand-by shifts or weekend overtime are automatically assigned to their proper pay type.

Each classification flows directly into payroll with its associated rate multiplier or allowance amount—reducing manual setup and ensuring consistency across rosters and pay runs.

As with any overtime condition, a rate sheet needs to be defined to indicate the pay rate for payroll

 

How Pay Item Mapping Works in ClockOn

Within Payroll Setup, each condition can be created as a unique pay item—for example:

  1. On-Call Allowance

  2. Recall Minimum

  3. Overtime 1.5x

  4. Overtime 2x

These items are then mapped to ATO-defined STP categories, such as Overtime, Allowance – On-Call, or Allowance – Other. This mapping ensures that every earning type is correctly reported during STP submission and remains fully traceable in payroll summaries.

How STP Reporting Reflects These Classifications

When payroll is processed, each mapped pay item appears as a separate line in the employee’s pay record and flows through to STP reporting. This gives payroll officers and auditors clear visibility over each component of an employee’s earnings.

All amounts are grouped under the correct ATO labels—for example:

  1. Gross Earnings: Base hours and loadings

  2. Overtime: Hours worked beyond ordinary time

  3. Allowance – On-Call: Paid for availability outside rostered hours

  4. Allowance – Other: Used for recall or call-back scenarios

This structure makes it easy to verify compliance before submission.

Example: Payroll Summary and STP Preview in ClockOn

Employee: Sarah Lee
Department: Pharmacy – Front Counter
Award: Pharmacy Industry Award 2020
Employment Type: Part-Time

Pay Item Description Hours / Qty Rate Amount STP Category
Base Ordinary Hours Standard rostered shifts 38.00 $30.00 $1,140.00 Gross
Overtime (1.5x) After 38 hrs 2.00 $45.00 $90.00 Overtime
Recall Minimum Called back after shift 3.00 $30.00 $90.00 Allowance – Other
On-Call Allowance Availability outside roster 1.00 $40.00 $40.00 Allowance – On-Call
Sunday Penalty Weekend loading 6.00 $45.00 $270.00 Gross
Annual Leave Accrual Auto-calculated       Leave Entitlement
Superannuation (10.5%)       $173.85 Superannuation Guarantee

 

STP Event Preview

  • Gross Earnings: $1,410.00

  • Overtime: $90.00

  • Allowance – On-Call: $40.00

  • Allowance – Other (Recall): $90.00

  • Superannuation: $173.85

Built-In Audit and Transparency Features

ClockOn provides real-time visibility before submission. Payroll officers can review all mappings in the Payroll Summary and STP Event screens, ensuring accuracy before lodging with the ATO.

This audit trail helps organisations maintain compliance with both Fair Work and ATO requirements, while also simplifying end-of-year reconciliation and external audits.

 

Why ClockOn Is Ideal for Complex Rosters and Shift Patterns

Industries such as healthcare, security, and trades often rely on on-call or recall arrangements. ClockOn’s award interpreter and STP mapping framework were designed to handle these complexities without manual intervention.

By combining rostering, attendance, HR and payroll in one system, ClockOn ensures that every shift type - from ordinary hours to emergency call-backs - flows seamlessly through to compliant STP reporting.

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