• Reportable employer super contributions – for employers

    If you make extra super contributions for an employee – for example, under a salary sacrifice arrangement – you need to report those extra contributions on your employee's annual payment summary if:

    • the contributions are more than you're required to pay by law, an industrial agreement or the super fund's governing rules, and
    • the employee has the capacity to influence the amount you contributed.

    The extra amount is called a reportable employer super contribution. You report only the extra amount on the employee's payment summary – you don't report compulsory super contributions, such as super guarantee payments.

    Example

    Pieter and his employer, ABC Pty Ltd, have agreed to a remuneration package under which ABC contributes $1,200 per month to Pieter’s super fund. Of this amount, $475 is the compulsory super guarantee payment.

    At the end of the financial year, ABC includes $8,700 on Pieter’s payment summary as reportable employer super contributions:

    Employer contributions ($1,200 x 12)

    $14,400

    Less Pieter’s super guarantee entitlement ($475 x 12)

    – $5,700

    Reportable employer super contributions

    $8,700

     

    End of example

    We need information about these extra contributions because they are included in the income tests for some government benefits and obligations. Reportable employer super contributions are not included in your employee's assessable income and don't affect the way you calculate super contributions for your employees.

    Next steps:

    See also:

      Last modified: 27 Jul 2016QC 21716