Superannuation Guarantee Health Check
Paying the Superannuation Guarantee contributions is a very important obligation for all employers.
Here’s a quick checklist of items to make sure you’re complying with all the requirements:
Are you paying superannuation for all your eligible workers?
Superannuation is payable for all eligible workers earning $450 or more (before tax) in a calendar month. Employees include company directors who receive payments in their capacity as a director and also contractors in certain circumstances (e.g. where their contract is for their personal labour which cannot be contracted out, whether they quote an ABN or not).
Are you paying the correct rate and including the right earnings?
Ordinary time earnings are generally what employees earn for their ordinary hours of work (e.g. commissions, shift loadings and allowances but does not include overtime payments).
Are you paying on time to the right fund in the right way?
Superannuation guarantee contributions are usually made quarterly via SuperStream (i.e. a system whereby contributions are made either through electronic funds transfer or BPAY) and the employer would qualify for a tax deduction for such payments provided they were made to a complying superannuation fund.
Note, to qualify for a tax deduction in the 2017 income tax year, the contributions due by July 28, 2017 must be received by the superannuation fund before June 30, 2017.
The penalties for failing to pay superannuation guarantee contributions are severe (i.e. the superannuation guarantee shortfall amounts, interest on those shortfall amounts and an administration fee of $20 per employee per quarter). If you have any queries regarding your superannuation guarantee obligations please don’t hesitate to contact us.