As an employer, you need to meet your super obligations to ensure that you are contributing towards the financial future of your employees. You are liable to pay the super guarantee on time at the correct rate and to the right fund.
What is Super Guarantee Eligibility?
Usually, all employees are eligible for the super guarantee (SG). Here are some rules for employees who are:
- Independent contractors
- Under 18 years old
- Private or domestic worker
- International workers
- Self-employed.
To avoid outstanding tax and super obligations, you need to accurately categorise your workers. You can engage a reliable tax accountant near your office, so you can reach out to them for a one-on-one meeting. For this, you can also find online by searching ‘accountant for small business near me’.
Check: Pay super for the correct workers
Have you determined:
- Which workers are eligible for super contributions, including any independent contractors?
- Whether you have employees working overseas?
- Consider applying for a certificate of coverage to avoid paying super in both countries.
Check: Select the right super fund to pay your workers
Make sure you have provided your eligible workers a choice of super fund within 28 days of their start date. Have you:
- offered your employees a superannuation standard choice form
- With this form, your workers can make their choice of super fund
- asked your workers for stapled super fund details in case they don’t make a choice
- selected your default super fund in case your employee doesn’t have a stapled super fund and hasn’t selected a fund
- offered your employee’s tax file number (TFN) to their super fund once selected
- understood how to pay super and worked out that you are paying to a complying fund or retirement savings account (RSA).
12% is the current SG rate of your eligible employee’s OTE. Make sure the payments reflect the current rate made to eligible workers on or after 1 July. For the quarter ending 30 June 2025, the SG rate of 11.5% will be applied for payments made prior to 1 July 2025.
Check: Pay contributions on time
Have you:
- Checked your super payment due dates? Super must be paid at least 4 times a year. The SG due dates are:
- Quarter 1: 28 October
- Quarter 2: 28 January
- Quarter 3: 28 April
- Quarter 4: 28 July
- allowed sufficient time for the contribution to be processed
- processing times may vary.
- When the due date for a super is on a weekend or public holiday, your contribution will be received by the fund on or prior to the next business day.
Unpaid or Late Super Payments
If you fail to pay on the quarterly due date or you don’t pay an eligible employee’s SG amount in full, to the right fund, and on time, you may have to pay the super guarantee charge (SGC) and file an SGC statement with the ATO. If you fail to pay, penalties will be imposed. The SGC is:
- Paid to the ATO
- not tax deductible
- above the super you would have otherwise paid to the employee’s fund.
If you find it confusing to meet super obligations, make sure to seek accounting services Melbourne.
Check: If you fail to pay on time
If you fail to pay on time, ensure you:
- Calculate the SGC
- File the SGC statement and pay the SGC by the due date
- The SGC and statement due dates are:
- Quarter 1: 28 November
- Quarter 2: 28 February
- Quarter 3: 28 May
- Quarter 4: 28 August
- provide complete information for each employee to ensure the collected SG entitlements are paid to the right worker’s super fund, including their
- full legal name
- date of birth
- tax file number
- last known address.
Check: Keep the accurate records
Make sure to keep records of the super contributions you’ve made for each eligible employee. By choosing Melbourne bookkeeping services, you can ensure you have accurate records.
Conclusion
As an employer, you need to meet your superannuation obligations. If you find it difficult to understand superannuation obligations, you can seek help from Reliable Melbourne Accountants.