Super Obligations For Employers

You must make super contributions for an employee if you're considered an employer for super guarantee purposes and your employee is entitled to the super guarantee.

You must pay contributions into a complying super fund or retirement savings account (RSA) and pass on your employee’s tax file number (TFN) to their super fund where you are required to do so. Your employees may be entitled to choose their super fund – if so; you must provide them with a form enabling them to make their choice.

As of 1 July 2014, you must pay a minimum of 9.5% of each employee's ordinary time earning each quarter in super. The Government has announced the rate will remain at 9.5% until 30 June 2021 and then increase by 0.5 percentage points each year until it reaches 12%.

Each year the ATO identifies industries where employers are a greater risk of not making super contributions for their employees. This year the focus is on employers in the following industries:

• child care services;
• pubs, bars and taverns; and
• industrial cleaning.

In early 2015 the ATO will write directly to employers in these industries. The letter is to educate and remind employers of their super obligations and advise of super obligation audits of these industries from July 2015.

In order to meet your super guarantee obligations as an employer you must:

• contribute at a rate of 9.5%;
• make contributions by the quarterly cut-off dates (28 October, 28 January, 28 April, 28 July);
• pay super for eligible contractors, even if the contractor quotes an Australian Business Number;
• keep accurate records;
• give an employee's tax file number to their super fund within 14 days of receiving it; and
• lodge a Superannuation guarantee charge statement quarterly if you haven’t paid the correct amount by the cut-off date.