Employee superannuation

Superannuation: A simple guide for Employers

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Superannuation, is an essential part of every employee’s financial future. As an employer, it’s your responsibility to make these compulsory contributions. But, managing super payments can be a complex task. This is where accounting software comes into play. In this guide, we’ll delve into everything you need to know to manage superannuation payments, ensuring compliance, and supporting your employees’ financial wellbeing.

Employee superannuation

Understanding Superannuation: The Basics

Superannuation is an Australian governmentrequirement for employers to contribute to their employees’ retirement fund. These contributions are referred to as the Employer Superannuation Guarantee (SG). The SG is a percentage of the employees’ ordinary time earnings (OTE) and must be paid quarterly to avoid the Super Guarantee Charge (SGC).

How often should superannuation be paid?

Superannuation payments are due at least four times a year, following these quarterly periods:

  • Q1: 1 July – 30 September, payment due by 28 October
  • Q2: 1 October – 31 December, payment due by 28 January
  • Q3: 1 January – 31 March, payment due by 28 April
  • Q4: 1 April – 30 June, payment due by 28 July

It’s important to note that if a due date falls on a weekend or public holiday, the payment should reach the fund by the next business day.

What happens with missed or late payments?

If payments are late or missed, employers must lodge an SGC statement and pay the SGC to the Australian Taxation Office (ATO). The SGC is a penalty equal to the amount of unpaid superannuation plus interest and an administration fee. Moreover, missed or late payments lose their tax deductibility.

The accounting software you use to run your payroll often has the ability to make payments to superannuation clearing houses directly, minimising the effort needed to stay compliant.

Top Bookkeeping Software Options

Here are some of the top superannuation bookkeeping software options that you can consider:

Xero is a popular choice for cloud bookkeeping software. It offers automated super payments, compliance updates, and integration with payroll.

QuickBooks offers a range of features designed to aid businesses in managing superannuation payments. It provides automated tracking of superannuation payments, reminders and alerts, and record-keeping features.

MYOB provides a comprehensive solution for managing superannuation. It offers features such as automated calculations, compliance updates, and integration with payroll.

Shellys Bookkeeping can assist you to setup software and train you on how to simplify your superannuation payments.

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