Superannuation Guarantee (Super) is an obligation that can trip up many business owners. An employer’s obligation is dependent on various factors relating to their employees and contractors. An employee or contractor’s income amount, age, business structure and type of work can determine whether you are required to make super contributions for them. With a mandatory 9.5% potentially needing to be contributed, this is an area that is important to get correct in your business. For example, did you know that if you are contracting workers solely for their labour you are likely required to pay super contributions for them?
Super contributions must be made directly to the employee or contractor’s super fund. Your obligation won’t be met by paying the contribution to the individual. To check if you’re required to pay Super contributions for your employees and contractors use the Super Guarantee Eligibility Tool found by clicking the button below.Furthermore, if you are required to pay super to your employees or contractors, you can use the below Superannuation Guarantee Contributions Calculator to ensure you are paying the correct amount. Alternatively, contact our team if you would like assistance with these calculations.Once you are aware of obligations and amounts to pay, it is important to keep in mind the Super lodgement and payment due dates. As with all due dates, the Australian Taxation Office (ATO) are strict with ensuring people adhere to lodgement and payment due dates. However, when it comes to Super payments, they treat these overdue payments and lodgements with priority. If you are not paying your employee or contractor the correct amount by the correct time, the ATO can take strong actions towards ensuring payments are received.
These actions can include:
- Director penalty notices
- Garnishee notices
- Direction to pay SGC.
To find out more about when Super Guarantee Contributions are due, refer to our blog, Lodgement Due Dates for January to June 2020.
If you have any further questions about your Superannuation Guarantee Obligations or anything else that we can assist with, please contact us by emailing support@walkerhill.com.au or calling our office on 07 3367 3155.
