Setting up new employees for super
Employees can choose their own superannuation fund or retirement savings account.
When you offer your employee a choice of super fund, you must tell them the name of the fund you will pay their super to if they don't choose a fund. You provide this information to your employees by completing section B of the Standard super provider choice form.
Check the list of complying super funds to find a default fund that's right for your business.
Which employees don't you pay super for?
For superannuation purposes, the definition of an employee is broad, and in some cases you may have to pay a contractor's superannuation.
To help you work out who's eligible, use the Superannuation guarantee (SG) eligibility decision tool on the Australian Tax Office (ATO) website:
How much super should you pay?
Use the ATO's SG contributions calculator to find the correct amount of super you'll need to pay. You'll need to know your employee's income and their chosen super fund.
How do you pay super?
For businesses with 20 employees or fewer, you can pay super for all employees to the Small Business Superannuation Clearing House. This means that you can pay one lump sum for all employees – even if they're with different super funds.
Alternatively, you can pay this amount to a superannuation fund or retirement savings account at least every quarter.
What is SuperStream?
Employers are obliged to send superannuation data and payments electronically via SuperStream.
SuperStream is designed to make superannuation contributions simple by introducing a new data standard for funds and employers to minimise the different types of data and payment methods employers had to go through to make contributions for their employees.
There are a variety of options available for employers to meet the SuperStream requirements from:
- their own payroll
- clearing houses
- default super funds
- assistance from their accountant or bookkeeper.
You'll need to keep a record of when and how you reported superannuation contributions to your employees. Special reporting requirements apply to superannuation payments made as fringe benefits or salary sacrifice.
You must also report in writing to your employees the details of the:
- contributions you've made to their superannuation funds at least once every quarter
- name of the fund
- employee's account number, if known.
Learn more about your requirements for keeping staff records.
Claiming tax deductions
You can claim deductions for contributions where the contribution:
- is to provide super benefits for your employee
- is made to a complying super fund or Retirement Savings Account (RSA) in the year of income.