Superannuation basics for employers - an audio guide
This guide provides general information about your superannuation obligations as an employer in audio format.
Superannuation, often called super, is money you set aside for your employees for when they retire. The guide covers a range of super topics for employers, including:
- when you are required to pay super
- how much super you are required to pay
- when super payments need to be made
- what do to if you’re self employed.
Superannuation basics for employers – an audio guide
This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.
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Listen to the audio (MP3, 4 minutes 13 seconds) or read the transcript
The information in this guide was current at June 2014.
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Audio guide transcript
Welcome to your audio guide on superannuation basics for employers – an overview from the Australian Tax Office (ATO).
This recording lasts approximately five minutes.
Today we are here to provide some information on superannuation for employers. Welcome David.
To get us started, when is an employer required to pay super for their employees?
Generally, you must pay super for your employees if they are 18 years old or over, and are paid $450 or more before tax in the calendar month. This is in addition to any wages or salary you pay your employees, and is referred to as the ‘super guarantee’.
How much super is an employer required to pay for their employees?
The amount you pay is a percentage of an employee’s ordinary time earnings, rather than a fixed rate. Rates change from time-to-time, so it’s a good idea to check this information with the ATO.
Up-to-date information on the super guarantee rate is available on the ATO website at ato.gov.au/payingsuper
You can also call the ATO on 13 10 20 to find out more.
Does the super guarantee apply to all employees or just those who work full time?
Employees are entitled to receive super payments from their employer whether they work on a full time, part time or casual basis. Temporary residents are also entitled to super.
And employers must pay super contributions into their employee’s super fund?
That’s correct. Some employees may be entitled to choose their own fund – this is something you need to discuss with your employees when they begin working for you.
You should also get your employee’s tax file number and pass it on to their super fund. This will make it easier for your employees to keep track of their super and find any lost super.
When do super payments need to be made?
Generally contributions must be paid at least four times a year by the quarterly due dates, which are the 28th of January, April, July, and October.
Are there any records employers should keep to show they’ve paid their contributions?
Yes, you need to keep records that show the date and amount of super you paid for each employee, how you worked out the level of super you paid, that you offered your employees a choice of super fund, and the details of the super fund that you paid your employee’s super into.
These records must be kept for five years.
Do you have any advice for those who are self-employed when it comes to building their super?
If you’re self-employed, you can choose to make super contributions to your super fund. This can be a great way of saving for your retirement.
Most self-employed people can claim a tax deduction for contributions they make to their super.
Thanks David. Anything else before we go?
Just a reminder that we encourage you to discuss super with your employees. Super is important, and providing some tips or information may make it easier for your employees to manage their super.
You can talk to them about how you pay super, which super fund they’re with, how they can manage their super, and when they can access it.
For more tax and super information, visit the ATO website at ato.gov.au/disability
For help over the phone you can call the ATO on 13 10 20 during business hours.
This information was provided to you by the Australian Taxation Office. We are committed to providing you with advice and information you can rely on.
The information in this recording was current at June 2014.
Your narrators were Jenny Seedsman and David Tredinnick.
This concludes the recording.