Calculating how much to pay
To work out how much super you have to pay for each of your employees, multiply their ordinary time earnings for the quarter by 9%. You then pay this amount to a complying super fund or retirement savings account by the quarterly payment cut-off date, which is 28 days after the end of each quarter.
Your employee's earnings are calculated from the first day you employ them.
If you make super contributions under an award, check that the contributions are enough to satisfy both the award and the super guarantee requirements of 9% of ordinary time earnings.
Example
During the fourth quarter of the 2008-09 financial year (1 April to 30 June 2009) Danni's ordinary time earnings were $8,000.
The super contribution Danni's employer must pay for Danni for the fourth quarter of 2008-09 is:
9% x $8,000 = $720 (minimum super guarantee contribution)
To avoid paying the super guarantee charge for the fourth quarter of the 2008-09 financial year, Danni's employer must contribute at least $720 to a complying super fund or retirement savings account for Danni by 28 July 2009.
Maximum contribution base
The maximum contribution base is the maximum amount of superannuation support that an employer has to provide for an employee each quarter. It's indexed annually. You don't have to pay super guarantee contributions for any earnings above this limit. This limit does not apply to other mandated contributions, such as contributions you pay under an award.
Super on back-paid salary or wages
If you back-pay salary or wages to a former employee, you have to pay super contributions on that back pay or you'll be liable for the super guarantee charge.
Example
On 31 December 2009, Sue finished her employment with company ZYX. In March 2010, the company provided Sue with back pay of 2% for the period from 1 July 2009 to 31 December 2009.
Company ZYX must pay a super contribution for the back pay, and they must do this in the quarter that corresponds to the payment - which is by the quarterly cut-off date of 28 April 2010. This should normally be paid into the fund that company ZYX made Sue's last super contribution into.
If company ZYX doesn't pay the super on time to a complying fund or retirement savings account, they will have to lodge a Superannuation guarantee charge statement - quarterly and pay us the super guarantee charge.
Sections within How much to pay and when to pay
Last Modified: Thursday, 21 February 2013