Employer super quick check
Paying super is an important part of being an employer. Super provides income for your workers in retirement.
Here's how to run a quick check of your super obligations to make sure you've
got everything sorted:
Check you're paying super to all eligible workers:
Some contractors may be entitled to super.
Check that you're paying the right amount:
Currently, you need to pay a minimum of 9.5% of their ordinary time earnings.
Check you're paying on time:
It is tax deductible against your business income.
At a minimum, you can pay super quarterly.
If you fail to pay on time, you may need to pay a superannuation guarantee charge, which is not tax deductible.
Check you're paying to the right place:
Pay super into your workers fund of choice.
If they haven't given you the details, pay it into your default fund.
Check that you're paying the right way:
Pay the SuperStream way – send both the payment and data electronically in a standard format.
You may be able to use the free Small Business Super Clearing House to distribute payments to your employees' super funds.
Check you're keeping accurate records:
Have evidence to show you've met your obligations.
Employing people involves lots of obligations, including superannuation.
The ATO have the tools and calculators to help you get it right.
Source: ATO – Run a quick check of your super obligations Author: The Institute of Certified Bookkeepers
Disclaimer: All or any advice contained in this newsletter is of a general nature only and may not apply to your individual business circumstances. For specific advice relating to your specific situation, please contact your accountant or contact me for further discussion.