Superannuation Obligations for a Business

The superannuation obligations for a business are a vital component of an employee’s financial wellbeing. Superannuation is the long-term savings plan that helps employees to save for their retirement. It is important for employers to understand their superannuation contribution requirements and the implications they have for their employees.

Employers have so much to worry about and staying on top of superannuation rules can be quite a daunting task. To ensure that staff are being paid the correct entitlements, employers should consider seeking professional help from trusted experts.

The business accountants at Taggart & Partners have been providing superannuation advice to small and medium sized businesses for years, and can help you too. You can reach us by calling (07) 3391 1188, by emailing or through our online contact form.

Questions of Superannuation Obligations for a Business Owner

Which Employees are Eligible to Receive Contributions?

In Australia, employers must make superannuation contributions to all their employees who are over 18 years of age that are working on a full-time, part-time, or casual basis. Employers must also make superannuation contributions to any employees aged between 16 and 17 who work more than 30 hours per week.

How Much are the Contribution Amounts?

An Australian employer must pay 10.5% of an employee’s ordinary time earnings into a complying superannuation fund. This payment is referred to as the superannuation guarantee. Employers can also make additional payments into superannuation on top of the superannuation guarantee for their employees. Generally, contributions are capped at $27,500 per employee per financial year.

When Must Contribution Payments Be Made?

According to Australian law, employers must make superannuation contributions for all eligible employees at least every quarter. More frequent payments may be required for some funds or agreements.

Where do Payments Go?

Employers are required to make contributions into a complying superfund or a qualified retirement savings account. There are situations when an employee can choose which superfund they want contributions paid into. As an employer it is important to know the ins and outs of superfund choice and professional advice can be of great benefit.

How are Payments Made?

Payments must be made using Superstream, which is an online data and payments platform designed to improve the efficiency of business transactions between employers, employees and superfunds. It was introduced by the Australian Tax Office (ATO) as part of a government program to increase the retirement savings of Australians. The platform makes it easy for employers to electronically make super contributions on behalf of their employees, as well as remitting all taxes due to the Australian Tax Office.

What is the Record Keeping Requirements?

Employers in Australia are legally required to keep records of all superannuation contributions they make on behalf of their employees. This includes both the employer’s contribution and any salary amounts. Records must be kept for a minimum period of seven years, and include details such as employee names, dates of contributions, total amounts paid and the name of the superannuation fund. Employers must also provide their employees with an annual statement containing details of the contributions made for that year. By keeping accurate and up-to-date records, employers can ensure they meet their obligations under superannuation law and help ensure their employees get the best possible retirement outcome.

Call on Taggart & Partners for Advice & Assistance

Knowing about superannuation contributions for a business is an important part of running a company. But it can be difficult to understand all the various rules and regulations, as well as the tax implications of different strategies. With so many factors to consider, getting professional advice about superannuation can be beneficial. One way to do this is by speaking with a professional business tax accountant.

Taggart & Partners will be able to provide tailored advice, taking into account your individual circumstances and business objectives. Reach out to us for superannuation advice by calling (07) 3391 1188, emailing or by getting in touch online.

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