Superannuation: What employers need to know

Employer Super quick checklist

Business Tax Update│February 2018

Superannuation is money you pay for your workers to provide for their retirement.

Generally, if you pay an employee $450 or more before tax in a calendar month, you have to pay super on top of their wages. The minimum you must pay is called the super guarantee (SG).

The SG is 9.5% of an employee’s ordinary time earnings.

Employer Super quick checklist

Here’s how to run a quick check of your super obligations to make sure you have everything sorted.

  • Check you are paying super to all eligible workers (some contractors may be entitled to super)
  • Check you are paying the right amount
  • Check you are paying on time
    • It is tax deductible against your business income
    • At a minimum, you can pay super quarterly
    • If you fail to pay on time, you may need to pay a SG charge, which is not tax deductible
  • Check you are paying to the right place (pay super into your worker’s fund of choice or your default fund)
  • Check you are paying the right way
    • Pay the SuperStream way – send both the payment and data electronically in a standard format
    • You may be able to use the free Small Business Super Clearing House to distribute payments to your employees’ super funds

Check you are keeping accurate record

For more information or to schedule an appointment, please contact us below or call us on 1300 627 829

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Source: TaxWise 2018