The Australian Tax Office (ATO) is reminding employers to check they are meeting their obligations when it comes to paying super to their workers.
To help you make sure you are meeting your requirements, consider this checklist:
- Are you paying the correct amount?
You are required to pay a minimum of 9.5 per cent of their ordinary time earnings to their superannuation fund.
- Are you keeping correct and up-to-date records?
It is important to maintain accurate record-keeping procedures, so you have evidence to prove you have been meeting your employer super obligations.
- Are you paying super to all eligible workers?
Like your employees, some contractors you hire may also be eligible for super contributions.
- Are you making payments to the right fund?
Unless a worker has not provided their details, you should be paying into their fund of choice instead of your default fund.
- Are you making payments on time?
The ATO allows employers to make contributions quarterly. Always ensure you make payments on time as late payments can incur a superannuation guarantee charge, which is not tax deductible. When making payments on time, they are tax deductible against your business income.
- Are you paying the right way?
It is important to send the payment and data electronically in a standard format (paying the SuperStream way). Your business may also be eligible to use the free Small Business Super Clearing House to distribute payments to your employees’ super funds.