If you’re responsible for paying wages, then you’ll be fairly clued-up when it comes to super. The Super Guarantee Act requires employers to provide sufficient super support for their employees. Employers are obliged to contribute a minimum percentage (currently 9.5%) of each employee’s ordinary time earnings to a complying super fund or retirement savings account. Superannuation has to be paid at least quarterly and is due by the 28th day after the quarter end.
Super Guarantee Threshold
Generally, if you pay an employee $450 or more (before tax) in a calendar month, you have to pay super guarantee on top of their wages. If your employee is under 18 or is a private or domestic worker, such as a nanny, they must also work for more than 30 hours per week to qualify for superannuation guarantee regardless of their earnings.
You have to pay super for some contractors, even if they quote an Australian business number (ABN).
You have to pay super no matter whether the employee:
- Is full-time, part-time or casual
- Receives a super pension or annuity while still working – including those who qualify for the transition-to-retirement measure
- Is a temporary resident – when they leave Australia, they can claim the payments you made through a ‘departing Australia superannuation payment’
- Is a company director
- Is a family member working in your business – provided they are eligible for super guarantee
What Are The Exceptions When It Comes To Paying Superannuation?
Some industry awards have a reduced superannuation threshold from the standard threshold of $450 gross of ordinary times earnings per calendar month.
Restaurant Industry Award 2010
(Section 30.2 – – Employer contributions (b) The employer must make contributions for each employee for such month where the employee earns $350.00 or more in a calendar month.)
Hospitality Industry (General) Award 2010
(Section 28.2 – Employer contributions (b) The employer must make contributions for each employee for such month where the employee earns $350.00 or more in a calendar month.)
For Employers under the Fast Food Industry Award 2010 the usual threshold of $450 gross per calendar month applies.
If you are classified within these industries, would like help with updating your payroll software with these limits, or would like some superannuation guarantee assistance, please contact our bookkeeping team today on (08) 9446 8588.