Are you an employer of staff on wage or salary payments?
If so, the ATO requires that you pay them the minimum superannuation guarantee (SG) contribution, each quarter, based on the ‘super guarantee rate’ for the relevant year. The ATO has a ‘Super Guarantee (SG) contributions calculator’ which employers can use to help you work out the superannuation guarantee amount to pay to your employee’s super fund. As long as you make sufficient super contributions for your eligible employees by the relevant cut-off dates, these contributions are generally tax deductible.
The regulations relating to employer superannuation guarantee contributions have changed since December 2021 and as such if you fail to provide the minimum level of super contributions by the cut-off date you will need to lodge a ‘Superannuation guarantee charge statement – quarterly’ to the ATO and pay the ‘super guarantee charge’ (SGC). The Super Guarantee Charge (SGC) is not tax deductible.
Most employees are covered by the superannuation guarantee legislation as it covers those who are full time, part time or casual. Some exceptions include employees who are: paid less than $450 (before tax) in any calendar month; non-residents paid solely for work done outside of Australia; and, under 18 years old and employed for no more than 30 hours per week.
Organisations that are income tax exempt or non-for-profit are not exempt from the superannuation guarantee legislation.
From 1 July 2022, the general superannuation guarantee will be increasing to 10.5%.
If you would like to discuss more about your employer requirements contact Lana and her team at Matovic Business Accountants at info@matovicaccounting.com.au or call us on (07) 3557 5721.
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