As an employer in Australia, it’s important to understand your obligations when paying superannuation for your employees. Generally, if an employee earns $450 or more before tax in a calendar month, you must pay a Super Guarantee on top of their wages. However, there are a few exceptions to this rule.
One exception is for employees under 18 years of age or employed purely in a domestic capacity, such as a nanny. To qualify for the Super Guarantee, under 18 years must also work more than 30 hours per week.
Another exception is for employees working elsewhere and earning a high income. These employees can apply for an SG employer shortfall exemption certificate, which allows them to manage their super contributions in a specific way.
Fortunately, the Australian Government provides a simple eligibility tool that can help you determine whether an employee might be exempt from the Super Guarantee. This tool can be a helpful resource for employers who need clarification on their obligations under the law.
Read more about Work out if you have to pay super here.
If you’re an employer in Australia, it’s essential to understand your obligations when it comes to paying superannuation for your employees. To learn more about the Super Guarantee and ensure that your business is compliant with the law, we encourage you to take action today. Use the Australian Government’s eligibility tool to determine whether an employee may be exempt from the Super Guarantee, and consult with a registered BAS Agent like Katia Chehade to receive expert advice and guidance.