Posted May 29, 2017
There is a lot of conversation about superannuation happening at the moment. Maybe it’s Scott Morrison’s latest scheme to assist with the housing affordability crisis, or the fact that there are so many baby-boomers retiring and it’s all they can think about. Maybe it’s just that it’s coming to the end of the year, and this is the time of the year when we are forced to think about our superannuation. But no matter why, superannuation is an important conversation for us all to be having, particularly small business owners.
Because for small business owners, superannuation is a constant battle. At HABA we hear all the time about salon owners simply not paying superannuation to their staff. Just like that. Or not paying it correctly, which is almost as bad. It results in a huge amount of stress for salon owners and their staff, so we thought we would just reiterate to you the top things to remember about superannuation before anyone else gets caught with their pants down.
You have to pay super when:
You have to pay superannuation for your employees if they fit into any of these categories:
- If they are 18 years old and over, and being paid $450 or more (before tax) in any calendar month
- If they are under 18 years old and being paid $450 or more in a calendar month and work more than 30 hours a week
You have to pay how much?
Compulsory employer superannuation contributions are called “superannuation guarantee” (SG) contributions. These payments must be paid into a designated superannuation fund, whether you nominate the fund or your employees do. 9.5% of the total wages and salaries earned by the employees, and they must be paid into a fund at least every 3 months.
How do you pay super?
All employers must use SuperStream (an online portal) when paying superannuation to their staff. HABA Payroll offers a gold-standard SuperStream Clearing House, which allows employers to make a single superannuation payment into a general fund, which then distributes the correct amount for each employee to their nominated fund. This offers salon owners a simpler and more time-effective way to make the correct payments into the correct funds each and every time while reducing your compliance costs.
By withholding, not paying or paying superannuation incorrectly, small business owners open themselves up to the risk of huge fines, which can be disastrous for your business. It is important that you keep records of all your superannuation transactions (preferably electronically, and backed up on the cloud) to ensure that you can prove your obligations have been met in the instance any questions are raised.
Don’t get caught out, and manage your superannuation effectively and efficiently with HABA Payroll. HABA Payroll handles all of the necessary back-end work for salon owners, ensuring that all employees are paid correctly, given the right super and everything is in line with the latest wage awards and legislation. It acts as a protective layer and insurance policy for your business, allowing you to get on with the work of running your business.
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