Super for Employers
As an employer you play a vital role in Australia’s superannuation system. But being an employer also means you have superannuation obligations you need to meet. So let’s walk through these super obligations so you can avoid additional paperwork, charges or penalties. When hiring a new employee, you must offer them a choice of super fund and a standard super choice form.
If your employee has a chosen super fund, pay their super contributions into this fund. If they don’t, you need to request their stapled super fund details from the ATO. A stapled fund is an existing super account which is linked or stapled to an individual employee, so it follows them as they change jobs. If there’s no stapled fund available, you can assign your default super fund for their contributions.
It’s important to make your choice of super fund obligations. If you don’t, you could face additional penalties. When paying super, you’re required to make contributions on behalf of all eligible employees and contractors. The minimum amount of super you need to pay is called the Superannuation Guarantee, also known as SG. Before 1 July 2023, the SG rate is 10.5%, but from 1 July onwards the SG rate increases to 11%.
SG must be paid at least quarterly, but you can pay more often. The SG quarterly due dates are the 28th of January, April, July and October each year. Some super funds, awards and contracts may require you to make payments more regularly. When paying super contributions, you must pay in full, on time and into the correct fund for all your eligible employees and contractors.
Check with the Fund to ensure you allow plenty of time for your SG contributions to be received before the due date and allow extra time for processing if you’re using a clearing house. If you’re late or don’t pay the correct SG amount, you’ll need to pay an additional charge known as the superannuation guarantee charge or SGC. This amount is paid to the ATO by lodging an SGC statement.
It’s also more than the amount you would have otherwise paid for super and isn’t tax deductible, so you’re better off getting it right the first time. For more information about your super obligations, visit ato.gov.au/superforemployers.
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