Your employer super guarantee obligations are changing from 1 July 2013
Did you receive one of these in the mail recently?
If you are an employer you are affected by the changes to super guarantee contributions effective from 1 July 2013.
Here’s what you need to know:
Super Guarantee is increasing from 9% to 9.25%
- 9% applies to all pays physically paid BEFORE 30th June
- 9.25% applies to all pays physically paid AFTER 30th June
You need to ensure the payroll software is changed for the increased super rate BEFORE any payments are processed in July. Desktop payroll software will need to be changed manually (eg MYOB, Reckon Accounts (previously known as QuickBooks)) whilst, generally speaking, online software will be updated automatically for you (eg Xero). You should contact your software provider if unsure how the change will be made.
If you process your payroll manually (eg wages book or spreadsheet) you will need to change the super guarantee to the new rate for pays physically paid after 30th June.
If you have employees on a salary package which includes the super guarantee, their packages will need to be reviewed to incorporate the .25% increase.
Super guarantee contributions will be applicable for employees who are 70 years or older:
There is no longer an upper age limit for super guarantee contributions. Having said that, employees who are 70 years or older will only be eligible if they earn more than $450.00 in the month.
You will need to ensure that the payroll software automatically calculates the super for these employees when meeting the criteria.
From 1st January 2014 employers must make super guarantee contributions for employees who have not nominated a super fund to a fund that is authorised to offer a ‘MySuper’ product:
- Employers must have a nominated fund where they make super guarantee payments for employees who have not selected a preferred fund.
- ‘MySuper’ is a simple low cost super product that will replace existing default products. Super funds will be allowed to provide ‘MySuper’ products from 1st July 2013 and are expected to make contact with their employer members in the near future regarding this. For more information click here.
You can get comprehensive information on all of the above at www.ato.gov.au/employersuper, including super guarantee rate increases for subsequent years.
We are working with our clients to ensure a smooth changeover in July. If you would like some assistance you can contact us here.
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