Understanding your super responsibilities

Super Guarantee (SG) is a compulsory contribution which all employers need to make on behalf of each of their eligible employees. Employer contributions are paid directly to each employee's nominated super fund, or a default fund on their behalf.

What you need to do

 

As an employer, the SG legislation requires you to contribute a minimum of 9.5% of an employee’s ordinary time earnings as super. These payments may be claimed as a tax deduction.

Determine who is eligible for SG payments


tick You need to pay SG contributions for employees who are at work or on leave such as:

  • paid sick leave
  • long service leave
  • annual leave

untick If you have employees who are under 18, these employees will generally only be eligible for super if:

  • they earn $450 (before tax) or more in salary or wages in a calendar month; and
  • they work for more than 30 hours a week.

For employees who are 18 or over, these employees are eligible for super if they earn $450 (before tax) or more in a calendar month, regardless of their working hours.

Calculate how much super you need to pay


As an employer, you must pay a minimum of 9.5% of each eligible employee's ordinary time earnings each quarter. If your employees are covered by an award or employment agreement which specifies a higher super contribution than 9.5%, you must pay that higher amount.

Ordinary time earnings (OTE) are usually the amount your employee earns for their ordinary hours of work. It includes things like commissions, shift-loadings and allowances, and generally does not include overtime payments.
 
The maximum SG contribution is 9.5% of the maximum super contribution base. The maximum contribution base is used to determine the maximum SG contribution that an employer is required to make under the super laws. This base is $54,030 per quarter in the 2018-19 financial year, which is indexed each year.
 

For more information, visit the Australian Taxation Office.

Submit your contribution details online


Whether you’re making contributions for one Rest member or thousands, we have easy payment methods to suit your business. Just submit contribution information through the secure EmployerAccess online system.

Providing employee Tax File Number (TFNs)


Employers are obliged by law to provide Rest with an employee's TFN within 14 days of them quoting it to you or when you make the first SG contribution on their behalf. The Australian Taxation Office (ATO) may apply penalties if you’re late in providing an employee’s TFN.

When you supply us with your employees' TFNs:

  • we’ll be able to accept all types of contributions to their account
  • additional tax for non-quotation of TFN will not be charged
  • it’ll be easier to trace lost super so they receive all their super benefits when they retire.

Pay on time


Rest recommends making monthly payments. Employers that are not required to contribute on a monthly basis under an award or industrial agreement can choose to make quarterly contributions.

SG payment deadlines
The SG deadline date is set 28 days after the end of each quarter.

Quarter Dates Due date
1st 1 July - 30 September 28 October
2nd 1 October – 31 December 28 January
3rd 1 January – 31 March 28 April
4th 1 April – 30 June 28 July
 

If you don’t meet the quarterly deadlines, the ATO may apply a penalty known as the SG charge. It may include the SG shortfall, interest and an administration fee which is not tax deductible and will result in an added expense to your business.

 If you’re making an after-tax contribution (i.e. voluntary contributions) on behalf of an employee, it must be paid to Rest by the 28th day of the month following the month from which the contribution was deducted.

Offering employees choice

 

Choice of Fund legislation allows eligible employees to choose which super fund their contributions are paid into. However if they do not make a choice, you can choose a MySuper compliant product to pay super into on their behalf.


Who is eligible for Choice of Fund?

 

As an employer you are responsible for identifying which employees are eligible for Choice of Fund.

For those employees who are eligible, you must provide a Standard Choice of Fund Nomination form to them within 28 days of their start date.

tick Employees can generally choose their super fund if they are:

  • employed under a federal award
  • employed under a former state award, now known as a ‘notional agreement preserving state award’
  • employed under another award or agreement that does not require super contributions, or
  • not employed under any state award or industrial agreement (including contractors paid principally for their labour).

untick Employees are generally not eligible to choose a super fund if you pay super for them under a:

  • state industrial award
  • preserved state agreement
  • federal industrial agreement such as an Australian Workplace Agreement (AWA)
      Or if they are in a defined benefit fund.

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Enrolling your new employees is easy

 

Whether your employees are new to Rest or existing Rest members, enrolling new employees online is easy, all you need to do is follow the simple steps below.

New to Rest


Add the employee’s details into EmployerAccess or in your next contribution payment including the employee’s:

  • employee’s full name
  • date of birth
  • gender
  • residential address
  • email
  • mobile number
  • date they began employment with you
  • employee’s TFN if they’ve supplied it for employment purposes
  • salary (for insurance calculations for Rest Corporate members)
  • occupational category (for insurance calculations for Rest Corporate members)

Once you’ve added your new employee online, we will send them a welcome pack and login details to complete the application process.

Existing Rest member


If you have employees with existing Rest accounts, they’ll need to supply us with specific information, and we’ll link them to your business.  Follow these easy steps:
  1. have your employee complete the Standard Choice Form and give it back to you.
  2. enter the details they’ve supplied in EmployerAccess or in your next contribution payment including the employee’s:
  • employee’s Rest member number
  • employee’s full name
  • date of birth
  • gender
  • residential address
  • email
  • mobile number
  • date they began employment with you
  • employee’s TFN if they’ve supplied it for employment purposes
  • salary (for insurance calculations for Rest Corporate members)
  • Occupational category (for insurance calculations for Rest Corporate members)
Once you’ve added your new employee online, we will send them a welcome pack and login details to complete the application process.

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