How much you must pay
The Federal Government's Superannuation Guarantee (SG) legislation requires employers to pay a minimum level of superannuation for each of their employees. The current SG Rate is 9%.

To work out the minimum amount of superannuation required for each employee, you multiply the SG percentage by the employee's ordinary times earnings.

Ordinary times earnings is the total of the employee's earnings for ordinary hours of work, over-award payments and shift loadings, bonuses and commissions, or as defined in the relevant award or industrial agreement. Awards and industrial agreements. If there is an award or industrial agreement at your workplace, the amount of superannuation you have to pay may be affected. If the award or industrial agreement amount is higher than the required SG amount, you must pay the higher amount.

Awards and industrial agreements
If there is an award or industrial agreement at your workplace, the amount of superannuation you have to pay may be affected. If the award or industrial agreement amount is higher than the required SG amount, you must pay the higher amount.

If you are unsure of award requirements, the relevant* State or Federal Government Department or Employer Association may be able to help you.

Who do you have to pay super for?
You must pay superannuation for employees if their gross salary and wages in any calendar month exceed the Federal Government's threshold, which is currently set at $450 per month.

The exceptions are for:

• Employees who are under 18 years of age and who work less than 30 hours per week; and
• Employees aged 70 or over.

When you must pay
Tasplan recommends that you pay contributions monthly. Most employees find this the easiest way to manage their commitments and it helps protect employee's benefits, while also complying with SG Legislation.

The Australian Taxation Office (ATO) advises that under SG Legislation, payments of employer SG contributions are required to be made at least quarterly, and by the 28th day of the month following the end of each quarter. The following table provides an easy guide to when payments are required.

If you currently pay contributions monthly, you should continue to do so and you will comply with this part of the legislation, as well with the many awards that stipulate monthly contributions.

What about personal contributions from your employees?
Under superannuation legislation, employees' personal contributions deducted from salary or wages must be forwarded to a complying superannuation fund no later than 28 days after the end of the month in which the contributions were deducted.

Reporting Obligations for Employers
From 1 January 2005, employers no longer have an obligation to provide their employees with a quarterly statement of superannuation contributions made on their behalf. There is no requirement for employers to cease current reporting. They may if they wish continue the provision of regular super contribution reports. It should be noted that there may in fact be an ongoing requirement in some awards or Australian workplace legislation to report super on pay slips. There may be advantages in providing super reporting in terms of employee relationships and in minimising employee enquiries about contributions made for them. Super funds will continue to issue annual ( and mid – year in some cases ) statements listing all contributions received.

Employers are still required to pay SG contributions at least quarterly.

Tax File Number obligations for employers
Legislation requires superannuation funds to collect members' Tax File Numbers (TFNs). It is in an employee's best interests to provide their TFN as it may save them having to pay an additional 15% Federal Government tax on their superannuation contributions (the surcharge tax). TFN legislation has several implications for employers. The ATO's Employment Declaration Form asks employees to authorise their employer to give the TFN to their superannuation fund. If an employee answers "yes" to give you this authority, you must do one of the following:

• Give the TFN to Tasplan either by phone, fax or letter within 14 days of the employee authorising you to do so; or
• Notification within the employees pay slip of payments already made
• Send the TFN to Tasplan with the first SG contribution made for that employee.

For helpful information and guidance to help you through Government's legislation, please phone our Client Services Managers on Freecall 1800 005 166.