Paying super to your employees

About Superannuation Guarantee

Generally, the current superannuation contribution rate under Superannuation Guarantee legislation, is 9.5% of ordinary time earnings (OTE).

The amount an employer must pay may be different if there's an Industrial or Enterprise Bargaining Agreement (EBA) or Award.

Employees for tax and super purposes include apprentices, trainees and some contractor arrangements. For more details visit the ATO.

We require Cbus employers to make monthly contribution payments. It's important that Cbus members receive regular super payments so the money can be allocated to their account and investment earnings can begin as soon as possible.

Employers may be obliged to make contributions more frequently due to industrial obligations. 

Find out more about when to pay super and tax and superannuation.

Paying employee super

Whatever the size of your business, our online payment options make paying super simple.

Payment options for employers
Choice of super fund

When a new employee is eligible to choose their own super fund, you need to provide them with a Standard choice form (PDF) within 28 days from their start date.

If your new employee doesn’t want to choose a fund, you must pay their contributions to your nominated 'default' fund.

Choosing your default fund

A default fund is the super fund your business nominates as the best fit to take care of the superannuation needs for all your employees.

It’s important to choose a fund that acts in the best interests of your business, and your employees. By nominating Cbus as your default fund, you’ll join the leading national super fund for your industry.

How do I make Cbus my default fund?

Keeping your records

As an employer, you need to keep the following records in English for at least five years:

  • records showing the choice form has been provided to all eligible employees
  • details of employees who do not have to be offered a choice form
  • documents issued by the super fund showing you have made superannuation contributions to an employee's chosen fund
  • records confirming that your employer nominated fund is a complying fund.
SuperStream

SuperStream was introduced by the Government to provide a simple, consistent method of preparing and paying employee super contributions.

All employers need to be aware of the deadlines to transition to the new SuperStream approved system. The date you’re required to comply depends on the size of your business.

  • Employers with 19 or less employees must comply by 30 June 2016 (with an ATO reprieve until 28 October 2016)
  • Employers with 20 or more employees must comply by July 2015 (with an ATO reprieve until 31 October 2015).
Streamline your online payments

We offer two SuperStream approved online systems to help you make the change to manage your employee super payments online.

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Employer SuperSite

It’s fast and easy to pay super to your employees with Employer SuperSite.

Employer SuperSite
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Cbus Clearing House

Streamline your employee super payments with Cbus Clearing House

Cbus Clearing House
It's important to provide employee tax file numbers

When an employee provides you with their Tax File Number (TFN), by law you’re required to provide this information to their super fund.

If a TFN is not provided, your employee will be unable to make personal contributions and they may pay more tax on their super.

If a member chooses not to supply their TFN, the contributions you make for them will be taxed at the top marginal rate of 45% plus the Medicare levy of 2%.

You can provide us with a new employee TFN within 14 days or when making the first contribution on their behalf.

For more information visit the ATO website or call 13 10 20.

Single Touch Payroll

What is Single Touch Payroll?

Single Touch Payroll (STP) is a government initiative to help simplify and enable you, the employer, to streamline your administration and reporting requirements to the Australian Taxation Office (ATO).

Does this change apply to me?

Single Touch Payroll will affect all businesses with 20 or more employees.

When do I need to make the change?

Not yet. The ATO are expected to release further information later in 2017.  

Reporting will become mandatory for all employers with more than 20 employees from 1 July 2018. A timeline of the changes is shown below:  

From 1 April 2018
  • Employers will need to conduct a headcount of their employees to determine if Single Touch Payroll is applicable
  • Employers will need to update payroll software to compliant versions that support Single Touch Payroll in time for the mandatory period of 30 June 2018.
From 1 July 2018
  • Mandatory - employers with more than 20 employees will need to start reporting through Single Touch Payroll
  • Voluntary - employers with less than 20 employees can report voluntarily by using updated payroll software.
What are the benefits?

It will give you, the employer, the ability to automatically report your employee’s salary and wages (including super information) to the ATO at the same time as paying your employees.

STP aims to cut the red tape associated with tax and super reporting obligations through using business reporting enabled software, including payroll solutions.

Can I report via Single Touch Payroll if I have less than 20 employees?

Yes, you can voluntarily take advantage of the benefits of Single Touch Payroll reporting from 1 July 2018, but you’ll need to use a compliant payroll solution.

Otherwise, you can continue to report payroll and super information the same way as you do now.

 

We’ll continue to update you on information as it is released by the ATO, but if you'd like to know more, please find updates from the ATO directly.

Super obligations fact sheet

Download our fact sheet for a handy, quick reference guide that outlines all your super obligations.

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What we offer employers

Find out everything we offer employers to streamline employee super payments and keep up to date with super obligations.

What we offer employers