As an employer, paying super is a critical part for setting up your employees’ long-term financial security. To ensure their superannuation guarantee (SG) is paid in full, on time and to the right fund, here’s some simple checks for super success:
- Check your employees’ eligibility
Time to check your workers are correctly classified!
Generally, all employees are eligible for SG but in some cases, there are additional eligibility rules for workers such as independent contractors.
Ask yourself two questions:
- Have you checked if your worker is an employee or an independent contractor?
- Have you checked if you need to pay super for your independent contractors?
Use our decision tool ato.gov.au/SGEligibility to help you determine if you need to make SG contributions for your workers.
- Check you have the right super fund
Where you pay super contributions is important. Your employee has the right to choose the super fund, or they may ask you to nominate a fund for them.
There are three options available to make sure you have the right fund:
- Check your employees are provided with a standard choice form, this will allow them to tell you their choice of fund.
- If your employees don’t choose a super fund, you can request their ‘stapled super fund’ details from us and pay to that fund.
- Select your default super fund if your employee doesn’t have a stapled fund and hasn’t chosen their own.
Once you have the correct fund, make sure you provide the fund with your employees’ tax file number (TFN).
- Check how much super you pay
The SG rate increased to 11.5% on 1 July 2024. For payments of salary and wages made on or after 1 July 2024 the minimum SG you must pay for each eligible employee is 11.5% of their ordinary time earnings (OTE).
Your super contributions for the quarter ending 30 June (due by 28 July 2024) are calculated at the previous 11% rate. This rate applies to salary and wage payments made prior to 1 July.
We have a calculator on our website that you can use to work out how much super to pay. It also doesn’t hurt to use the calculator to double check you’re getting it right.
You can find the calculator and more information at ato.gov.au/calc_howtopaysuper
- Check you’re paying on time
Don’t forget the due dates! Super contributions must be paid at least four times a year, by the quarterly due dates.
If you use a commercial clearing house, processing times can vary so make sure you allow enough time for the payment to reach the employee’s fund on time. An employee’s fund must receive their super payments on or before the quarterly super due dates for payments to be considered ‘paid’. You can check with your clearing house for their processing times.
Grab your calendars, a red pen and mark off these dates:
- 28 July
- 28 October
- 28 January
- 28 April
Helpful tip: Set up reminders for these dates in your calendar so that you are notified when the due date is coming up.
For more information visit ato.gov.au/payontime
- Check you know what to do if you miss a payment
We understand things can happen. If you miss a payment or pay late, you will need to lodge a super guarantee charge (SGC) statement and pay the SGC to the ATO. This payment is more than the super you would have otherwise paid to the employees’ fund and is not tax deductible. That’s why it’s so important you pay in full, on time and to the right fund.
Make sure you calculate, lodge and pay the SGC by the due date or further penalties may apply.
- 28 August
- 28 November
- 28 February
- 28 May
Quick tip: Take your time when completing the SGC statement. We can’t allocate your payments to the correct employee’s super fund if we don’t have enough information to match them. The earlier you lodge your SGC statement correctly and pay your overdue super, the less interest and charges you will have to pay.For more information visit ato.gov.au/lateSG
- Check your employees’ details are regularly updated
Make sure you keep your employees’ information up-to-date. This includes their name, TFN, and chosen super fund details. If an employee changes super funds, make sure they complete a new choice of fund form.
- Check your records are accurate
Another key responsibility as an employer is that you keep good records. Making sure they’re accurate and up-to-date will help you track your super payments and show that you are meeting your super obligations.
These records should include the amount of super you paid for each employee, the dates you paid them, the amount of SGC you calculated for each quarter, any SGC statements you’ve lodged, and any voluntary contributions you’ve made.
By completing these super checks and staying informed about your super obligations, you can ensure that you’re doing the right thing for your business and your employees.
If you are behind or feel like you could be falling behind in meeting your super obligations, get in touch with us. The earlier you contact us, the sooner we can work with you to get you back on track.
For more information on our checklist, visit ato.gov.au/superquickcheck
Peta Lonergan is the Assistant Commissioner for Superannuation and Employer Obligations at the ATO. She is passionate about supporting and educating employers to help them comply with their tax and super obligations.