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It is important to make sure you are across the detail of your Superannuation Guarantee obligations for your employees.
In today’s diversified labour market, your workforce may comprise a mix of full-time and part-time staff, contractors, casuals, employees on parental leave, trainees, consultants, and even foreign nationals on working holidays.
It is important that your business is across the detail of what your employees are entitled to, or partner with someone who is.
Here’s some common questions from employers that may help you make sure you are meeting your Superannuation Guarantee (SG) obligations.
The Australian Tax Office has a comprehensive online course designed to steer employers in the right direction to meet their SG obligations.
Good super funds will also have staff to help employers who select them as their default fund to navigate their super responsibilities.
QSuper has a dedicated Employer Solutions team to help you meet your SG obligations.
You must pay superannuation for workers when they meet eligibility criteria. Under new legislation1 effective from 1 July 2022, this includes paying Superannuation Guarantee contributions for workers earning less than $450 a month. The legislation removes the $450 monthly income threshold for super contributions.
Contractors are eligible for super if the majority of the dollar value of what they are supplying is their labour.
Workers who are already receiving a pension or annuity through super are still entitled to receive SG payments, as are temporary residents, who can reclaim money paid into a super fund on their behalf when they leave the country.
If you send an employee overseas to work, you must still pay their super entitlements, and the same goes for any family members contributing their labour to your business.
From 1 July 2022, if you employ someone under the age of 18, you must pay SG contributions on their earnings if they work more than 30 hours per week, irrespective of their monthly level of earnings. This follows the removal of the $450 monthly income threshold for super contributions under legislation that will come into effect from 1 July 2022.
Employers can apply for a certificate exempting them from paying the Super Guarantee if they engage the services of a highly paid individual who has two or more employers and is likely to exceed the concessional contributions cap, which was increased from $25,000 per year to $27,500 per year from 1 July 2021.
Workers who take up the option of paid parental leave present a cultural challenge for businesses. While they are not eligible for Super Guarantee payments during the period they are utilising the taxpayer-funded benefit, the Fair Work Ombudsman has recommended that ‘best practice’2 for employers is to maintain the super payments while the employee is caring for their new child.
As an employer, it is your responsibility to keep accurate, up-to-date records of how much Super Guarantee money you have paid for each employee, and how you calculated that figure. That applies even if you have chosen a clearing house to distribute the funds.
The records must be kept for at least five years.
You must also provide evidence that you have offered your employees a choice of superannuation fund, and that your company’s default fund offers a MySuper product.
We see our relationship with employers as a partnership, with the aim of making the management of your Super Guarantee obligations as seamless as possible.
Our Employer Solutions team is available to answer any questions.
It's easy to make QSuper your default fund. As one of Australia's largest super funds, we're big on all the things that can help your business and employees - but small on the things that don't.
More reasons to choose QSuper
1. Australian Government, Treasury Laws Amendment (Enhancing Superannuation Outcomes For Australians and Helping Australian Businesses Invest) Bill 2021.
2. Fair Work Ombudsman, Best practice guide: Parental leave, accessed 24 November 2021, at fairwork.gov.au
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