Employers in Australia have an obligation to make superannuation contributions on behalf of their eligible employees. Eligible employees are:
1. Aged between 18 and 70
2. Paid $450 (before tax) or more in a calendar month, and
3. work full-time, part-time or on a casual basis

If you have eligible employees, you, as an employer, must pay superannuation that is at least 9% of each eligible employee’s earnings base (from 1st July 2008, their ordinary times earnings should be used).

The superannuation contribution payment dates are the same every year, and as an employer, you have an obligation to know these dates, and to make the payments ON TIME, BEFORE OR ON THE DUE DATE (this includes weekends and public holidays).

The due dates each year, for each quarter are as follows:

Q1 – For the period between July and September – Super MUST be paid by 28th October
Q2 – For the period between October and December – Super MUST be paid by 28th January
Q3 – For the period between January and March – Super MUST be paid by 28th April
Q4 – For the period between April and June – Super MUST be paid by 28th July

As an employer, you have an obligation to also offer your employee, a choice of where the superannuation contribution will go (i.e. choice of funds).

There are severe consequences to failing breaching these obligations, which include, in the worst case scenario, a gaol sentence! 

Some more information about superannuation obligations (taken from the ATO WEBSITE) are detailed below:

You are considered an employer if you employ workers under a verbal or written employment contract on a full-time, part-time or casual basis. You may also be considered an employer if you make payments to a worker under a contract. If you are an employer, you need to understand and meet your superannuation guarantee obligations.

These obligations include:

*  making super contributions for your eligible employees by the cut off dates each quarter
* making at least the minimum 9% contribution amount of the earnings base for each eligible employee
* paying the superannuation guarantee charge to the Tax Office if you don’t make the required super contributions by the due dates
* checking if any of your employees are eligible for a choice of super fund
* providing your eligible employees with a Standard choice form
* passing on your employees’ tax file numbers to their super fund
* paying super contributions for any eligible contractors
* keeping records of your super contribution payments and that you have offered your eligible employers choice of super  fund. 

IF YOU THINK YOU MIGHT HAVE FAILED TO MEET ONE OF YOUR OBLIGATIONS REGARDING SUPERANNUATION, CONTACT US AS SOON AS POSSIBLE, SO WE CAN ADVISE YOU WHAT TO DO NEXT!

If you are in a situation where you do not have enough money in your bank account to make the super contribution because you have to pay the BAS, it is better to lodge the BAS on time, pay the SUPER on time, and make your BAS payment later -- you will incur interest on the late BAS payment, but it is a small price to pay compared to the consequences of failing to pay superannuation on time! Speak to us if you are unsure about your obligations (current clients only!).