As the new financial year approaches, there are two important changes to Super Guarantee (SG) that will be of relevance to your business. Namely, the rate of Super Guarantee is increasing from 10% to 10.5%, and the $450 per month threshold for Super Guarantee eligibility is being removed.
What does this mean for your business?
As of 1 July 2022, employers will be required to make Super Guarantee contributions at the new rate of 10.5% to their employees’ eligible super fund, regardless of their monthly pay.
Currently, if you pay a worker $450 or more in a month, generally you must also pay Super Guarantee. From 1 July 2022 you'll need to pay Super Guarantee contributions to an employee's super fund regardless of how much they are paid.
The Super Guarantee is legislated to further increase to 12% by 2025.
What do you need to do
As an employer, it is important to ensure that your payroll and accounting systems are updated from 1 July 2022 so that your employees’ Super Guarantee entitlements are correctly calculated.
If the removal of the $450 threshold necessitates that one or more of your previously ineligible employees will now be paid Super Guarantee for the first time, you will need to provide them with a Standard Choice Form. However, if your employee does not provide a choice of super fund, you may need to request their ‘stapled super fund’ details from the ATO.
Employers are exempt from paying a Super Guarantee contribution in some instances, for more information about the upcoming SG changes please access the ATO website.
Outsourcing your payroll
For further clarification with regards to these changes, or if you are considering outsourcing your payroll, get in touch with our team.
We understand that in-house payroll can be costly and time consuming, particularly when considering the ongoing changes to government legislation. Our team of fully qualified tax and accounting professionals use best practice accounting standards to integrate every aspect of the payroll process into your business, simplifying your payroll model, providing you with immediate reporting and ensuring compliance with regulatory bodies.
Related: A Guide to outsourcing your Accounting and Payroll
Have you noticed our #FridayExpertTips... here's one that relates to #Accounting
“There are a lot of rules and government requirements around Payroll. The more employees you have, the more complex your payroll usually becomes. Outsourcing your payroll to a professional service firm may give you peace of mind."