Are your super payments up to date?



You might be pretty good at paying your employees their wages and PAYG tax payments are now automated when you do your BAS lodgements. However, what about super? This can often be a forgotten liability that a business faces. But did you know that like your BAS, super needs to be reported on and paid quarterly. Plus there are penalties that apply if you don’t.

Here is the list of things you need to know if you pay employees:

1. Do I have to pay super?
Employees in Australia are entitled to a Super Guarantee, which applies when they earn over $450 in a month before tax. This applies regardless of their employment arrangement.

The minimum super payment under the Super Guarantee is 9.5% and is calculated in addition to the wages they are paid. It is also important to note that some contractors are also entitled to super payments, even if they are quoting an ABN.

Generally sole traders don’t have to make super guarantee payments to themselves, however, as of 1st July 2017 you will be able to claim 100% deduction for contributions made until they are 75 years old.

2. How much do I need to pay?
The Super Guarantee is 9.5% of their ordinary times earnings. This includes things like commissions, loadings and allowances, but doesn’t include overtime. You need to report on and this and make payments to their nominated account 28 days after the end of the quarter.

The deadlines are:
28 October 
28 January 
28 April; and 
28 July

3. What is a clearing house?
A clearing house is useful if you have a large number of employees, each with a seperate super fund (because they can nominate a fund they want to use). A clearing house accepts your payments and distributes them to the appropriate funds. From a reporting perspective it is considered paid on the date that the clearing house receives the payments.

4. What happens if I miss a payment?
If you miss a payment or are late with a payment you may have to pay superannuation guarantee charge. If you have paid super for your employees in the past and generally pay on time then the ATO is unlikely to pursue a super guarantee charge statement.

You can also claim a late payment offset for contributions you’ve used as a pre payment for current or future payments.

5. What is SuperStream?
SuperStream is the way that businesses need to pay the super contributions to super funds. It automates and streamlines the reporting and payment processes.

Paying superannuation in addition to other reporting and payment requirements can become complex. We recommend that you invest in a book keeper or accountant to help you keep your books in order and get them to manage your legislative reporting and payment requirements.

Even if you are a larger business that has an in house finance team having another company or accountant to audit these is highly beneficial and can save you on fines and penalties for late or missed payments.

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About Author

Kelly Morgan
Kelly Morgan

Kelly Morgan has over 32 years’ experience as a Chartered Accountant and is the Managing Partner of Azure Group heading up the Business Accounting, Technology & International divisions. Kelly is passionate about working with business owners. By working closely with her clients, Kelly helps them to maximise the opportunities in their business and assist them to achieve their goals.

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