Superannuation Checklist

With Single Touch Payroll bringing increased focus on compliance, paying superannuation correctly is more important than ever.

Here are some ideas to form your own superannuation checklist:

  • Check that you are paying superannuation to all entitled workers. It is important to know that some contractors may be entitled to superannuation as well.
  • Check you are paying the right amount. Remember each quarter stands alone. Check if you are paying 9.5% of OTE up to the quarterly maximum contributions base. The current maximum contribution base is $55,270.
  • Recognise the definition of ordinary time earnings (OTE) for superannuation calculations. OTE is usually the amount an employee earns for their ordinary hours of work. It includes things like commissions, shift loadings and certain allowances, but not overtime payments. Additional superable components can also be defined in an award or agreement. For each employment status (e.g. full-time, part-time or casual), make it clear and understand what the employees’ ordinary span of hours are.
  • Pay superannuation on time. At a minimum, the ATO permits employers to pay superannuation quarterly. If you don’t pay on time, you need to pay the superannuation guarantee charge.
  • Check you’re paying to the right place. Pay superannuation into the employees’ nominated super fund. If they haven’t given you the details, contribute super for the employee into your company default fund.
  • Check you’re keeping accurate records. Keep evidence in case of an audit to show that you have met your obligations for compliance.