We thought it would be a good idea to remind employers of their obligation to pay superannuation guarantee contributions – currently at a minimum rate of 9.5% of ordinary time earnings on behalf of all eligible workers earning $450 or more before tax in a calendar month. Employees include company directors who receive payments in their capacity as a director (and also contractors in certain circumstances).
Ordinary time earnings are generally what employees earn for their ordinary hours of work (e.g. commissions, shift loadings and allowances, but does not include overtime payments).
Superannuation guarantee contributions are usually made quarterly via SuperStream (i.e. a system whereby contributions are made either through electronic funds transfer or BPAY) and the employer will qualify for a tax deduction for such payments if such payments are made to a complying superannuation fund.
The penalties for failing to pay superannuation guarantee contributions are quite severe (i.e. the superannuation guarantee shortfall amounts, interest on those shortfall amounts and an administration fee of $20 per employee per quarter). Please contact us if you have any queries to ensure that the correct amount of superannuation guarantee contributions are paid by the due date.
More information? To find out more, give us a call on 1300 023 782 or email email@example.com.
The team at C&D Restructure and Taxation Advisory are here to help. As part of the Vault Group we can offer the full suite of financial products and advice to help you navigate the business landscape. Schedule a meeting here via Calendly or give us a call on 1300 1 VAULT (1300 182 858)
Latest posts by Craig Dangar (see all)
- The Covid-19 Pandemic Has Caused An Increase In Demand For Renovations And New Homes Across Australia - July 29, 2022
- Homeowners Are Falling Victim to Scams as Building Industry Delays Continue To Increase - July 27, 2022
- Tips To Develop a Successful Email Marketing Campaign - July 22, 2022
- 2026 Victoria Commonwealth Games Will Create 7,500 Jobs - July 20, 2022