Employer 'must do' list
As an employer, you have specific obligations you must meet in order to comply with federal superannuation legislation and any Awards or agreements that your employees are covered by.
Superannuation Guarantee Contributions (SG) - How much to pay
The amount you have to pay is a percentage (known as the charge percentage) of each employee's monthly or quarterly 'ordinary time earnings'. The charge percentage is set out in the Super Guarantee law and is currently 9%. To work out the amount you need to contribute to the superannuation fund for each employee, you simply multiply the employee's 'ordinary time earnings' for the relevant month or quarter by 9%.
What are 'ordinary time earnings'?
''Ordinary time earnings' are generally what your employees earn for their ordinary hours of work and include:
- over award payments,
- commissions,
- allowances (except reinbursements or expense allowance),
- bonuses (except those unrelated to perfomance criteria,
- shift loading and casual loading, and
- paid leave.
'Ordinary time earnings' does not include overtime.
If you require more information on 'ordinary time earnings' , you should contact the ATO on 13 10 20 or visit their website www.ato.gov.au.
Who is eligible for the 9%?
Generally, employees aged between 18 and 69, who are paid $450 or more (before tax) in a calendar month,and work full-time, part-time or on a casual basis, are covered by the SG legislation.
There are some employees who are exempt under SG legislation. The ATO publication Superannuation guarantee - how to meet your super obligations (NAT 1987) explains what you need to know to meet your obligations as an employer and business operator.
You should contact the ATO on 13 10 20 or visit their website www.ato.gov.au for more information.
When do I have to pay?
SG Quarter |
Due date for SG payment |
|---|---|
1 July - 30 September |
28 October |
1 October - 31 December |
28 January |
1 January - 31 March |
28 April |
1 April - 30 June |
28 July |
Employers are required to make SG payments on behalf of their employees. Failing to pay the SG contribution by the deadlines above may result in having to pay the SG Charge, which is not tax deductible and will result in added expense to your business.
