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PKF Australia

Accountants and Business Advisers

Superannuation: what employers need to know

Superannuation: what employers need to know

 

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.

Note:

SG payments are due on 28 January 2018. Make sure you pay the SG on time to avoid paying the SG charge.

Employer super quick check

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 records.

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