Tax basics for small business

Your super obligations

As an employer, you must pay super for your eligible employees and certain contractors. This obligation is called the superannuation guarantee. Your employees may also be eligible to choose the super fund you pay their super into.

The following table summarises the super obligations you have to yourself, employees and contractors, depending on your business structure.

Yourself	Sole trader or partnership If you operate your business as a sole trader or partnership, you are not an employee and the superannuation guarantee rules don't apply to you. Instead, like any self-employed person, you can claim a deduction for personal contributions you make to a super fund. You may also be eligible for a super co-contribution if you make personal super contributions. We recommend you seek professional advice when considering your own super. Company or trust If your business operates as a company or a trust, you are likely to be a director or an employee. In this case, the superannuation guarantee minimum rules apply to you in the same way as they apply to other employees.
Employees	Sole trader, partnership, company or trust Regardless of your business structure, you must contribute 9% of an eligible employee's ordinary time earnings to a complying super fund or retirement savings account at least every quarter. You may have to allow your eligible employees to choose which super fund they want to use. You must also pass on each of your employees' TFN (provided in their Tax file number declaration form) to their super funds.
Contractors	Sole trader, partnership, company or trust You must make super contributions for a contractor if they: are remunerated wholly or principally for their personal labour and skills must perform the contract work personally are paid by reference to hours worked rather than completion of the contract.

Sections within Your super obligations

• What you must do
• What if you haven't met your super obligations