Help your employees save for retirement

Understanding your legal obligations as an employer is an important part of running your business.

The Australian Government requires businesses to provide a minimum level of super to their employees, so when it comes to paying your employees’ super, you’ll need to understand the ins and outs of what’s required by law for you to do. The Superannuation Guarantee (Administration) Act 1992 sets out the requirements that need to be followed.

As a registered Australian Ethical employer, we’ll help you stay on top of what you need to know and do, so you can continue to grow your business.

Below are four main points for your consideration.

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What you need to know

1. How much super to pay

The current Superannuation Guarantee law means that you to pay a minimum of 9.5%1 of your employee’s ordinary time earnings (OTE). For most employees, this simply means their normal working hours (excluding overtime) but it may also include things like commissions, shift loadings and allowances.

There’s also a limit to the maximum amount of super that you can pay your employees – the maximum contributions base is used to determine what this amount is.

For more information about this, visit the ATO website.

1 The Superannuation Guarantee contribution percentage. Rates are scheduled to gradually increase to 12% by 30 June 2026.

2. When to pay

Employers can choose to pay their employees SG on a fortnightly or monthly basis, or whenever your pay runs occur, but at a minimum, they should at least be paid on a quarterly basis.

When you’ve worked out the easiest way to pay your employees, all you need to do is make sure you’re meeting your payment deadlines. If you don’t meet the deadline, you are required to pay a super guarantee charge (SG Charge) which is not tax-deductible and lodge a SG Charge statement.

Payment period dates

Australian Tax Office (ATO) SG payment due date

Late payment - SG Charge due date

1 July to 30 September

28 October

28 November

1 October to 31 December

28 January

28 February

1 January to 31 March

28 April

28 May

1 April to 30 June

28 July

28 August

More information about this can be found on the ATO website.

If a member is making contributions as a payroll deduction from their after-tax salary, these must be paid to their super fund within 28 days of the end of the month. 

If you don’t have any employees that you need to pay within any quarter, get in touch with us so that we know not to expect a payment from you for that period.

What you need to do

Make super contributions

As an employer, you’ll need to make SG contributions on behalf of employees who are:

  • employed on a full-time, part-time or casual basis (including those who are working in Australia temporarily) and earn more than $450 (before-tax) in a calendar month. Contractors paid mainly for their labour are also considered employees for superannuation guarantee purposes (even if they quote an ABN).
  • if employees are under 18 years old they must also have worked more than 30 hours in a week.

Additional information is available on the ATO website.

Send us your employee Tax File Number (TFNs)

If your employee gives you their tax file number (TFN) you’ll need to provide this to us when you start to make their SG contributions, otherwise the ATO may impose a penalty.

As well as the 15% tax on employer contributions, employees without a TFN attached to their super are currently taxed at an additional rate of 32% on ‘No TFN’ contributions paid into the fund on their behalf. This means your employees may be taxed at 47% in total.

And without a TFN, this also means if your employee wanted to make additional personal contributions, these won’t be accepted.

Be super smart and send us your employees’ TFNs today.

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