Paying super is an important part of being an employer. Super provides income for your workers in retirement which is why the ATO takes it’s payment so seriously.
Here’s how to run a quick check of your super obligations to make sure you’ve got everything sorted.
Check you’re paying super to all eligible workers: Are you aware that some contractors may be entitled to super?
- Check you’re paying the right amount: Currently you need to pay a minimum of 9.5% of their ordinary time earnings.
- Check you’re paying on time.
- It’s tax deductible against your business income.
- At a minimum, pay super quarterly.
- If you don’t pay on time, you need to pay a superannuation guarantee charge, which is not tax deductible.
- Check you’re paying to the right place.
- Pay super into your worker’s fund of choice. Make sure that it’s part of your process when taking on a new employee, that they complete a Superannuation Choice Form.
- If they haven’t given you the details, pay it into your default fund. It’s no excuse to not pay an employees superannuation on time, just because they have not given you their superfund details.
- Check you’re paying the right way.
- Pay the SuperStream way – where both payments and data are sent electronically in a standard format.
- For most of the businesses we work with, payroll is processed in Xero, so we use the Xero Auto Super functionality to pay their employee super via SuperStream
- For businesses with less sophisticated payroll systems, you may be able to use the free Small Business Super Clearing House to distribute payments to your employees’ super funds.
- Single Touch Payroll is the next step in streamlining your payroll reporting, and a standard part of all of our payroll packages
- Check you’re keeping accurate records. If we are taking care of your payroll in Xero, you can be certain that this has been taken care of.
- Keep evidence to show you’ve met your obligations.
Employing people involves lots of obligations, including superannuation. We have the tools and calculators to help you get it right.
If you would like some more information, please don’t be embarrassed. It’s best to speak up. Give us a call.
Alternatively, you can find more on this topic on the ATO website: