Generally, if you pay an employee $450 or more (before tax) in a calendar month, you have to pay them super on top of their wages.
If your employee is under 18 or is a private or domestic worker, eg a nanny, they must also work for more than 30 hours per week to qualify.
You pay super regardless of whether the employee:
is full-time, part-time or casual - working holidaymakers are included
receives a super pension or annuity while still working
is a company director
is a family member working in your business – provided they are eligible for SG.
Note! You may also have to pay for some contractors, even if they quote an ABN. Superannuation guarantee amnesty a step closer
The proposed amnesty allowing employers to self-correct superannuation guarantee (SG) non-compliance has been reactivated.
What does this mean for employers?
If the Treasury Laws Amendment (Recovering Unpaid Superannuation) Bill 2019 (the Amnesty Bill) is passed by the Parliament, employers will be given a one-off amnesty, with reduced penalties and fees, to disclose historical SG non-compliance and pay any SG charge imposed in relation to the disclosed SG shortfall.
The amnesty allows employers who qualify for the amnesty to claim tax deductions for payments of SG charge and contributions made to offset any SG charge made during the amnesty period.
The amnesty period starts on 24 May 2018 and ends 6 months after the day the Amnesty Bill becomes law. This is a longer period than the original 12-month amnesty.
Tip! If you are concerned that you may have SG corrections to make, please speak to us.