Tax Facts – Superannuation Guarantee
In addition to employees’ salaries and wages, employers are required to pay super contributions on behalf of all their eligible employees. This compulsory contribution is the superannuation guarantee. It requires you to pay super for your eligible employees, contribute to the correct super funds, and pay contributions by the cut-off date each quarter. The minimum super amount you are required to pay is 9.5% of each eligible employee’s earnings base (usually their ordinary time earnings).
You are generally required to pay superannuation contributions for your employees if they are:
- Between 18 and 69
- Paid $450 or more (before tax) in a calendar month
MORE: Use the Superannuation Guarantee Eligibility Tool to determine whether you need to pay superannuation contributions for an employee.
The ATO provides the following tools to help you understand and meet your obligations:
- Between 18 and 69
- Superannuation Guarantee Charge (SGC) statement and calculator — Calculate your SGC liability and prepare the SGC statement.
- Employee/contractor decision — Determine whether your new or existing workers are contractors or employees (for tax and super purposes)
- Superannuation guarantee eligibility decision — See whether you need to make super contributions for your employees
- Superannuation guarantee contributions calculator — Calculate how much super you should be contributing for your eligible workers.
NOTE: There are some instances where you do not have to pay super for employees.