- Not paying enough super
- Missing the quarterly cut-off dates (28 October, 28 January, 28 April, 28 July)
- Not understanding that sometimes they need to pay super for contractors, even if the contractor quotes an Australian Business Number (ABN)
- Not keeping accurate super records
- Not passing an employee's tax file number (TFN) on to their super fund
- Not lodging a superannuation guarantee charge statement if they're late paying their employee super or don't pay enough super.
How do you pay and who do you pay it to?
Generally, employees are eligible for super if all of the following apply:
- They are between 18 and 69 years old (inclusive)
- They are paid $450 (before tax) or more in a calendar month
- They work on a full-time, part-time or casual basis. Currently, employers need to contribute (as of July 2014) a minimum of 9.5% of their eligible employees' ordinary time earnings as a Super Guarantee to a complying super fund by the quarterly
What happens if I miss a payment deadline?
If employers are late paying their employees super or don't pay enough super, they must lodge a superannuation guarantee charge statement with the ATO. How do I treat Contractors? Employers need to pay super contributions for contractors they pay under a contract that is wholly or principally for the labour of that person - even if the contractor quotes an ABN.
Keeping good records
Employers must keep records that show
- The amount of super they paid for each employee and how it was calculated;
- That they have offered their eligible employees a choice in super fund;
- How they calculated any reportable employer super contributions.
- Remember to pass on your employee's TFN
- If an employee gives their employer their TFN for super purposes, the employer must pass on their employee's TFN to the super fund within 14 days of receiving it. If employers don't pass on their employee's TFN, they will be liable for a penalty.
Useful Tip: To see if you’re entitled to receive the Super Guarantee, and what is regarded as ‘salary’, visit the Super Guarantee Explained page
Need to know if you're an employee or contractor?
Try this government decision tool
- The regulator ASIC has an Employer or Contractor Decision-Making Tool that's a great place to start to learn more an important and often confusing distinction in employment.