You must make super contributions for an employee if you're considered an employer for super guarantee purposes and your employee is entitled to the super guarantee.
Working out if you have to pay super
You also have to pay super for contractors if the contract is wholly or principally for their labour, and for employees who are temporary residents of Australia.
If you’re a sole trader or partner in a partnership you don’t have to pay super for yourself, but you can make super contributions as a way of saving for your retirement.
Setting up super for a worker
You must pay contributions into a complying super fund or retirement savings account (RSA) and pass on your employee’s tax file number (TFN) to their super fund where you are required to do so. Your eligible employees may be entitled to choose their super fund – if so, you must provide them with a form enabling them to make their choice.
How much to pay and when to pay
If you are calculating super guarantee for pay periods that cross over 1 July 2013 you should note that the SG rise will be compulsory for all salary and wage payments made after 30 June 2013, as contributions are calculated based on the date you pay salary or wages to your employees.
From 1 July 2014, the super guarantee rate will increase to 9.50%and will continue to increase in small increments until it reaches 12% on 1 July 2019.
For help working out how and when to apply the SG rate increase, refer to
Super reform - questions and answers for employers
What you must do if you haven’t met your obligations
If you don’t pay the minimum amount into the correct fund by the due date, you’ll have to lodge a ) and pay us the superannuation guarantee charge. This charge is the amount of shortfall super that needs to be paid for the employee, plus interest, plus an administration fee.
Records you need to keep
You must keep records that show:
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