Employer obligations

FUND DETAILS     USI: NES0100AU     ABN: 72 229 227 691     ADDITIONAL INFORMATION

Super obligations for employers

Employers have an obligation to pay superannuation guarantee (SG) for their employees.

Your eligible employees

Generally, if you pay an employee $450 or more (before tax) in a calendar month, you must pay them super guarantee (SG) contributions on top of their wages.

From 1 July 2022, the $450 threshold mentioned above will not apply. SG contributions must be paid for eligible employees no matter how much they earn.

If your employee is under 18 or is a private or domestic worker, such as a nanny, they must also work more than 30 hours per week to qualify. For example, you will have to pay them super on top of their wages for each week that the employee has worked more than 30 hours.

Amount of super payable

The minimum super you must pay each quarter for each eligible employee is a percentage of their ordinary time earnings (OTE). The percentage is known as the SG rate. The SG Rate is scheduled to change each year as shown in Table 1 below.

Table 1 – SG Rates

Period

1 July 2021 – 30 June 2022

General super guarantee (%)

10.00

Period

1 July 2022 – 30 June 2023

General super guarantee (%)

10.50

Period

1 July 2023 – 30 June 2024

General super guarantee (%)

11.00

Period

1 July 2024 – 30 June 2025

General super guarantee (%)

11.50

Period

1 July 2025 – 30 June 2026 and onwards

General super guarantee (%)

12.00

The maximum SG contribution is limited to a maximum contribution base. This base amount is shown below for the current financial year and is indexed annually and is usually available before the start of the financial year.

Table 2 – Maximum Contribution Base

Income year

2021–22

Income per quarter

$58,920

Table 3 – Maximum Contribution Base example

Betty is the Head of Marketing at Example Electrical Pty Ltd.

During the July–September quarter of the 2021–22 financial year, Betty’s OTE is $60,000.

The quarterly maximum contribution base for 2021–22 is $58,920.

Example Electrical Pty Ltd uses the maximum contribution base to work out the SG contribution for Betty for the quarter:

$58,920 × 10% = $5,892.00

Betty’s OTE above $58,920 is ignored.

When to pay super

The SG contributions must be paid to the super fund within 28 days after the end of each quarter, see table below. You can generally claim a tax deduction for super contributions that you pay on time. If your SG contributions are late, you must lodge a Superannuation guarantee charge statement and pay the superannuation guarantee charge (SGC) to the Australian Tax Office (ATO).

Table 4 – SG Due Dates

Quarter

1 January - 31 March

SG Contribution due date

28 April

Quarter

1 April - 30 June

SG Contribution due date

28 July

Quarter

1 July - 30 September

SG Contribution due date

28 October

Quarter

1 October - 31 December

SG Contribution due date

28 January

If you deduct super contributions from an employee’s salary or wages, such as salary sacrifice or personal after-tax contributions, the amount deducted must be paid to the super fund or paid to an approved clearing house before the end of the 28‑day period beginning immediately after the end of the month in which the deduction was made.

Table 5 – Salary sacrifice remittance example

An employer deducts $1,000 from Betty’s pay on 10 June as a salary sacrifice contribution.

The employer must either pay the $1,000 directly to Betty’s super fund or via an approved clearing house before 28 July.

Tax file number and Pay slips

Employers must provide the employee’s Tax File Number (TFN) to the employee’s super fund within 14 days of receiving the Tax File Number declaration or when you make the first payment to the fund receiving the TFN.

Details of any super contributions must be included in your employee’s pay slip, including:

  • the amount of contributions made during the pay period (or the amount of contributions that need to be made)
  • the name, or the name and number, of the superannuation fund the contributions were made to.

Record keeping

Employers must keep records for five years showing:

  • the amount of super you’ve paid for each employee
  • any documents you use to help calculate entitlements that you offered your eligible employees a choice of super fund.
  • This applies even if you use a clearing house facility to pay contributions.

Stapling

If you have new employees start and they don’t choose a super fund, you may have an extra step to take to comply with choice of fund rules. You may need to request their ‘stapled super fund’ details from the Australian Taxation Office (ATO).

When a new employee starts, you can follow the following simple steps:

Step 1

  • If your new employee has chosen a super fund, pay the SG contributions to the chosen super fund.
  • Keep a record of your employee’s request to pay to their chosen super fund.
  • No further action required.

Step 2

  • If your new employee has NOT chosen a super fund, request the stapled fund details from the ATO.
  • Pay the SG contributions to the stapled fund.

Step 3

  • If your new employee does not have a stapled fund, or has not chosen a super fund, you may pay the SG contributions to the default.
  • Employers must follow these steps in this order, otherwise the employer may be required to pay the choice shortfall penalty.

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