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Your employer super obligations
Super Guarantee (SG)
The Australian Government requires employers to provide a minimum level of superannuation to help employees save for their retirement.
Generally, if you pay an employee $450 or more before tax in a calendar month, you must pay superannuation on top of their wages. These compulsory superannuation payments are called Superannuation Guarantee (SG) contributions:
- The SG is currently 10% of an employee’s ordinary time earnings
- You must pay SG at least four times a year, by the quarterly due dates
- You must pay and report super electronically in a standard format, ensuring you meet SuperStream requirements
- Your super payments must go to a complying super fund – most employees can choose their own fund
- If you don’t pay the SG on time, you may have to pay the super guarantee charge.
The importance of passing on employee information
When your employee starts work with you, it is important that they provide you with their Tax File Number (TFN) on the ATO's TFN declaration form. You will need to pass this on to us:
- within 14 days of receiving the completed form from your employee, or
- when you make the first SG contribution on their behalf.
If we do not have your employee's TFN, they could unnecessarily pay tax at the highest marginal tax rate.
The super you pay an employee is calculated from the day they start working with you. You must make payments at least four times a year and by the quarterly due dates:
|Quarter||Period||Payment due date|
|1||1 July – 30 September||28 October|
|2||1 October – 31 December||28 January|
|3||1 January – 31 March||28 April|
|4||1 April – 30 June||28 July|
To work out the payment amount, multiply your employee’s Ordinary time earnings (OTE) for the quarter by the SG rate (9.5%) – or if you’re paying a higher super rate, by that percentage.
You may claim a tax deduction for the super payments you make for employees within the financial year you make them.
For more information on superannuation and tax, call the ATO on 13 10 20