Superannuation Guarantee Obligations

Superannuation Guarantee obligations are administered by the ATO and require you to remit nine percent of an employee’s earnings. Earnings in the sense is defined to be a concept known as “Ordinary Times Earnings” (OTE’s), which can differ to the Gross wage of an employee. Certain components of the employee’s wage can be excluded from this concept eg Overtime payments. Super guarantee contributions have to be paid for each eligible employee to the correct super fund at least four times a year, by the quarterly cut-off dates shown in the following table.
The Superannuation Contribution must be paid to a Complying Superannuation Fund, and you must ensure that this is the case, a process we can assist you with. Also in addition to paying the super into the correct type of fund, you must offer your employees a choice of super fund. Your Bentleys Advisor is able to provide you with assistance in meeting your obligations and provide an appropriate choice of superannuation fund to all employees.

 

Employer nominated super funds (default funds)

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 do not choose a fund. This is referred to as your employer nominated super fund (or default fund). The super fund you choose must:

  • be a complying, and
  • offer a minimum level of life insurance

Superannuation Guarantee Charge

The penalty for not meeting the Superannuation Guarantee liability obligations are that the Super Guarantee Charge will be imposed on you. The obligations include any of the following:

  1. The correct amount of super
  2. Paying by the relevant date
  3. Paying the super to the correct fund

The additional Superannuation Guarantee obligations, above the normal contribution in this charge are:

  • The amount of Super is based on Salary & wages not OTE’s
  • An Administration levy is imposed per form and per employee
  • Interest is payable on the shortfall of super
  • The Superannuation Guarantee Charge is NOT tax deductible

Should you have concerns about meeting your Superannuation guarantee obligations, feel free to talk to us at Bentleys and we can assist you with all the issues you may be having.