All Australian businesses have responsibilities when it comes to superannuation. Even if you just have one or two employees.
- Paying super
- Giving employees’ choice of super fund
- Deciding on your businesses’ super fund of choice
- Knowing when and how to make payments
- Keeping up with legislation and super changes.
Paying super - 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.
At Cbus, we ask 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.
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 super fund of choice
Your super fund of choice (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. View the benefits Cbus offers to your business and your employees.
Keeping up with legislation and super changes
Single Touch Payroll
Single Touch Payroll (STP) is the new way for you to report wages, PAYG withholding and super information to the ATO. Instead of waiting until the end of the financial year, your employees' payroll information is reported at each payroll using a compliant payroll platform.
The ATO may provide exemptions from STP reporting for eligible employers. Read more about STP on the ATO website.
STP applies to all employers from 1 July 2019.
|Large employers (20+ employees)||Small employers (5-19 employees)||Micro employers (1-4 employees)|
|Employers with more than 20 employers should already be reporting through Single Touch Payroll.||Small employers need to start reporting through STP any time from 1 July to 30 September 2019. The ATO may grant deferrals to small employers who request additional time to start STP reporting.||The ATO will help micro employers with transitioning to STP and have offered alternative options– such as allowing employers who rely on a registered tax or BAS agent to report quarterly until 30 June 2021, rather than each time payroll is run. A number of no-cost and low-cost Single Touch Payroll solutions are now available for micro employers.|
Find out more about what you need to do to be ready for STP.
We’ll continue to update you on information as it is released by the ATO.
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.
Tax file numbers
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.