paying superannuation for employees

As an employer, you must pay your employees at the correct rate, as well as any entitlements they are eligible for. This means that it is ultimately the ATO’s responsibility to collect unpaid superannuation on behalf of employees. The superannuation guarantee (SG) is the minimum percentage of an employees’ wages paid into their super – and it’s a legal requirement. The fund covers most employees, but there are guidelines that determine who is eligible to participate. It is also referred to as a company pension plan . You have to pay the SG to eligible employees (generally those aged over 18 who earn over $450 a month). The current SG rate is 9.5%. As an employer, if you don’t pay the required SG contributions into your employees’ super accounts by the quarterly due date, you may have to pay a Superannuation Guarantee Charge (SGC) to the ATO. AccountRight calculates the amount of superannuation you need to pay on behalf of your employees, but on occasions the figure calculated might appear to be wrong. Our help topic Checking and adjusting superannuation guides you through the areas you need to check, and how to adjust over- or under-paid superannuation amounts. Paying into a superannuation fund is mandatory by Australian labour laws, and it requires employers to contribute when the salary paid on any given month for earnings of $450 or more. A pension (/ ˈ p ɛ n ʃ ə n /, from Latin pensiō, "payment") is a fund into which a sum of money is added during an employee's employment years and from which payments are drawn to support the person's retirement from work in the form of periodic payments. U.S. Department of Labor: 200 Constitution Ave NW Washington, DC 20210 1-866-487-2365 TTY 1-877-889-5627 The superannuation guarantee and super on overtime and bonuses. If you don’t pay your employees’ superannuation when you’re supposed to, you could face some significant penalties. Testing if Someone is a Contractor or Employee. You can also consider paying monthly if that suits your payment cycle or bookkeeping better. The first rule is that you must pay superannuation for anyone who is an employee. Pay superannuation for each of your employees at least quarterly, before the cut off date. The cut off dates are 28 days after the end of each quarter, so usually the 28th of January, April, July, and October. Superannuation: A superannuation is an organizational pension program created by a company for the benefit of its employees. Generally, you legally have to contribute superannuation payments on behalf of an employee if the employee is at least 18 years of age, and is receiving at least $450 per month (before tax) in a calendar month. Therefore, you must first decide if a person you hire is an employee or a contractor. 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