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Employer super obligations

What are my obligations as an employer?

As an employer you are required by law to pay your employees super contributions. This compulsory contribution is called the Superannuation Guarantee (SG). You must pay 10% (as at 1 July 2021) of employees earning base for your employees super to their nominated super fund by the cut-off date each quarter.

Which employees are eligible for SG?

As a rule, if you pay an employee $450 or more (before tax) in salary or wages in a calendar month, you must also pay SG. Salary or wages include any overtime earned by the employee.

Generally, all employees are eligible for super. It doesn’t matter if the employee is:

  • Full-time, part-time or casual
  • Receiving a super pension or annuity while working (this includes employees on transition to retirement)
  • A temporary resident, such as a backpacker
  • A company director
  • A family member working in your business.

Do I have to provide my employees with a choice of super fund?

Yes. Your employees are entitled to a choice of fund. Both you and your employees must fill out the Standard Choice form provided by the Australian Tax Office (ATO). Alternatively, you and your employee can also complete the Freedom of Choice Standard Choice form located on our website.

When do I have to pay?

To avoid paying the superannuation guarantee charge (SGC) to the ATO, please pay the correct amount of super before the following dates:

QuaterDateQuarterly payment cut-off date
Quarter 11 July - 30 September28-Oct
Quarter 21 October - 31 December28-Jan
Quarter 31 January - 31 March28-Apr
Quarter 41 April - 30 June28-Jul

Important Notes

There are significant penalties for not paying contributions to the employee’s nominated fund. The SGC is more than the super you would have otherwise paid to the employee’s fund and is not tax deductible. If you miss making a super guarantee payment on time and to the right fund, you have legal obligations to lodge a SGC statement by the due date and paying the SGC to the ATO.

 

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