Best ways to boost your superannuation
Want to live your best life in retirement? Wouldn’t it be fantastic to know that you will be able to live well when you finish… from Best ways to boost your superannuation
The ATO have their super-hero capes on and they are cracking down on late or unpaid superannuation (super) by employers.
It is compulsory for employers to pay all eligible employees superannuation at least 4 times a year. The minimum rate for each employee is currently 11% of their ordinary time earnings.
By law, an employee’s super fund must receive the required payments on or before the quarterly due dates or there may be penalties such as the “super guarantee charge” (SGC). SGC is non-deductible.
Quarterly super payment due dates:
|Payment due date
|1 July – 30 September
|1 October – 31 December
|1 January – 31 March
|1 April – 30 June
It is possible to make payments more frequently than quarterly, as long as the due dates are being met. We would suggest the best practice would be monthly payments and to ensure all the required payments are made at least 10 days prior to the quarterly due dates.
Superannuation clearing houses
To make your payment obligations easier, you could consider making use of a “clearing house.” Clearing houses will distribute the super contributions to your employees’ funds for you.
While this will make the process less complicated, it is important to allow the clearing house enough processing time to still meet the payment due dates.
If you would like further advice or assistance regarding processing your superannuation payments for your employees, please feel free to contact us.
Further information can also be found on the ATO website.