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  • Super guarantee client health check

    Paying super is an important part of being an employer. It provides income for your workers in retirement.

    This checklist is designed to help businesses who employ staff meet their super guarantee (SG) obligations. Tax professionals' can use it to help their clients understand their obligations.

    Next step:

    If you can't download the form you can:

    • order a copy online – search for NAT 74962
    • order a paper copy by phoning our publications ordering service on 1300 720 092

    Paying super to all eligible workers

    You need to:

    • pay SG to an employee if you pay them more than $450 before tax in a calendar month
      • there are special conditions for contract workers and employees under 18
      • company directors who receive payments in their capacity as a director are eligible for SG contributions as the company is their employer for SG purposes.
    • pay SG if you employ eligible contractors – some contractors, even if they have their own ABN, may still be eligible for SG
    • claim super contributions as a tax deduction – a tax deduction can be claimed for super payments made for employees in the financial year they are paid. Contributions are considered paid when received by the super fund.

    See also:

    Paying the right amount of super

    You need to:

    • pay the minimum of 9.5% of ordinary time earnings – generally what employees earn for their ordinary hours of work, this includes things like commission, shift loading and allowances but not overtime payments
    • pay the right SG rate based on your employee's award, as some are higher – if an award stipulates a rate less than 9.5% you must still meet the minimum 9.5% of ordinary time earnings requirement.

    See also:

    Paying super on time

    You need to:

    • pay SG at least four times a year by the quarterly due dates – some super funds require contributions to be made monthly
      • making more regular payments may make it easier to meet your super obligations and manage your cash flow
      • penalties and interest may apply for missing quarterly super payment dates.

    See also:

    Paying super to the right place

    You need to:

    • give your eligible employees the choice of super fund they would like their SG paid into
    • check their award and provide each eligible employee with a super choice form.

    Next step:

    Paying super in the right way

    You need to:

    • pay and report super electronically in the SuperStream standard
    • consider using the Small Business Superannuation Clearing House – this is a free service where you make SG contributions as a single electronic payment and the clearing house distributes the payments to employees' funds.

    See also:

    Keeping records

    You need to:

    • keep records to show that you have met your SG obligations – you must keep records for five years showing how much SG you paid and how it was calculated, records must also show you offered each employee a choice of super fund
    • contact us as soon as possible if you have made a mistake meeting your super obligations – we offer help and support to employers that want to do the right thing and willingly participate in the system, if a mistake is made, contact us as soon as possible to discuss your situation.

    See also:

      Last modified: 03 Jan 2018QC 51409