It is not easy running a new business. There are all sorts of legal requirements to understand. In addition, a new employer must know their responsibilities with regards to wages, benefits, and superannuation, which is one of the major payments to employees.
New business owners may find it overwhelming trying to understand superannuation. In reality, however, it is easier than we believe. All you need to do is become familiar with a few major concepts:
Maintain Detailed Records
Enter information pertaining to the super funds to which you are paying contributions, the sum you paid, the date of payment and what period is covered by the amount paid.
Choosing a Super Fund
Can workers choose which super fund they would like to join? There are awards and agreements in which the choice of the super fund is not up to the employees.
Business owners are required to present a standard choice form to qualified workers who prefer to pick their own super fund. Consult the ATO website for more information on standard choice forms.
Getting to Know SuperStream
Beginning 1 July 2015, businesses are required to comply with a new policy called SuperStream. It is designed to simplify the process of reporting superannuation contributions to the government, saving business owners plenty of time.
The Superannuation Rate
Several changes in the superannuation rate have been witnessed over the last several years. Here are the essential things to remember:
- 1 July 2015: 9.5%
- 1 July 2021: 10%
- 1 July 2023: 11%
- 1 July 2024: 11.5%
- 1 July 2025: 12%
When are Super Payment Due?
Employees have to pay super fees to their employers every quarter. Following are the due dates for each quarter:
- Quarter 1, 1 July – 30 September: Due 28 October
- Quarter 2, 1 October – 31 December: Due 28 January
- Quarter 3, 1 January – 31 March: Due 28 April
- Quarter 4, 1 April – 30 June: Due 28 July
If you want to learn more, there are plenty of resources online including government websites. If you are just starting a business and know little about superannuation, meet with one of our experts who can guide you through the process. If you want to know more about super and your obligations as an employer, contact PJS Accountants.