What do you need to do as an employer?
As an employer, you’re required by law to pay superannuation to help your staff save for their retirement. But what does that actually entail?
What is the Super Guarantee?
The Superannuation Guarantee (SG) is a compulsory payment by employers into their employees’ super.
For the 2018-19 financial year, the payment is set at 9.5% of the employee’s ordinary time earnings. This is scheduled to increase to 12% by 2025.
|Financial Year||SG rate|
|2017 to 2021||9.50%|
|2021 - 2022||10.00%|
|2022 - 2023||10.50%|
|2023 - 2024||11.00%|
|2024 - 2025||11.50%|
|2025 - 2026||12.00%|
Who do I need to pay super to?
Generally, you have to pay super for any employee who is:
- Over 18 years of age and earns at least $450 (before tax) from you per calendar month
- Under 18 years of age, working at least 30 hours per week and earning at least $450 or more (before tax) in a calendar month.
To work out how much you need to pay, simply multiply your employee’s ordinary time earnings for the payment period by 0.095 (i.e. 9.5%).
If your employee earns over $54,030 in a quarter (in the 2018-19 financial year), you only need to pay SG contributions based on the maximum super contribution base of $54,030.
And don’t forget, to avoid fines or penalties you must:
- Send each new employee’s Tax File Number to us when they start working for you
- Ensure you’ve completed all super contributions by the due date each quarter.
Can I claim a tax deduction for contributions?
Yes, you can claim a full tax deduction for all contributions you make to Statewide Super on behalf of your employees – this includes super guarantee and salary sacrifice contributions.
If you’re not sure whether or not you need to pay super on behalf of an employee, contact the Australian Tax Office on 13 10 20 or visit www.ato.gov.au.
If you’d like to find out more about when and how to pay your Superannuation Guarantee contributions, call our employer services team on 1300 65 18 65.