On this page
- Provide proper options to new staff
- Find forms to set up super for new staff
- Use the ATO calculator to make correct payments
Set up new employees
Employees can choose their own superannuation fund or retirement savings account.
When you offer your employee a choice of super fund, you must tell them the name of the fund you will pay their super to if they don't choose a fund. You provide this information to your employees by completing section B of the Standard choice form listed below.
For superannuation purposes the definition of an employee is broad, and therefore in some cases you may have to pay a contractor's superannuation. To help you work out who is eligible, use the Superannuation Guarantee (SG) eligibility decision tool.
How much should I pay?
Use the calculator to find the correct amount of super you will need to pay. You will need to know your employee's income and their chosen super fund.
Who do I pay it to?
Super payments for all employees can be made to the Small Business Superannuation Clearing House for businesses with 20 employees or less. This means that you can pay one lump sum for all employees, even if they are with different super funds.
OR pay this amount to a superannuation fund or retirement savings account at least every quarter.
There is now a new obligation for employers to send superannuation data and payments electronically, called SuperStream. It is designed to make superannuation contributions super simple by introducing a new data standard for funds and employers to minimise the myriads of different types of data and payment methods employers had to go through to make contributions for their employees.
There are a variety of options available for employers to meet the SuperStream requirements from their own payroll, clearing houses, default super funds or assistance from their accountant or book-keeper.
Large and Medium employers (those with greater than 20 employees) have until 31 October 2015 to be using a SuperStream solution and smaller employers (less than 20 employees) have until 30 June 2016.
Keep a record of all contributions made
You will need to keep a record of when and how you reported superannuation contributions to your employees. Special reporting requirements apply to superannuation payments made as fringe benefits or salary sacrifice.
You must also report in writing to your employees the details of the:
- contributions you've made to their superannuation funds at least once every quarter
- name of fund
- employee's account number if known.
Which employees don't you pay super for?
To check the eligibility of payments for employees, you should refer to the ATO website SG Eligibility Decision Tool.
You can claim deductions for contributions where the:
- contribution is to provide super benefits for your employee
- contribution is made to a complying super fund or Retirement Savings Account (RSA) in the year of income.