The Superannuation Guarantee (SG)
SG is a compulsory contribution which all employers need to make on behalf of each of their eligible employees. Employer contributions are paid directly to each employee's nominated super fund, or a default fund on their behalf
Choice of fund
Choice of Fund legislation allows eligible employees to choose the super fund that their super is paid into. As an employer, you are responsible for identifying if your employees are eligible, providing them with a Standard Choice form within 28 days of their start date, paying contributions into their chosen fund within two months and selecting a default fund for employees who don't make a choice.
Provide tax file numbers to us
Providing your employees' tax file numbers (TFNs) is very important. If you don’t provide your employees’ TFNs to us, they won’t be able to make any voluntary contributions and may pay more tax on their super than necessary.
When an employee has given you their TFN, the law requires that you pass it on to their super fund. It is generally required that you do this when you next make a contribution for any employee who has given you their TFN.
However, if you receive an employee’s TFN within 14 days of sending your contribution for the employee, then you have up to 14 days from receiving the TFN to pass it on to the fund.
Your TFN responsibilities are to:
- accept TFNs from your employee,
- respect the privacy of employees who quote you their TFN, and
- pass on their TFN when you next make a contribution to the employee’s superannuation fund.
Claim a tax deduction
You can claim a tax deduction for super payments you make for employees in the financial year you make them. Contributions are considered paid when the super fund receives them; it’s not enough that the money has left your bank account. We suggest that you pay before 17 June to allow sufficient time for the funds to be transferred.
SuperStream is the name of the Superannuation Data and Payment standards you need to be compliant with when paying super contributions for your employees. Under SuperStream, you need to to pay your employees’ super contributions online. The Sunsuper clearing house is a simple SuperStream solution with is simple to use and will save you time.