Common Employer Mistakes Regarding Superannuation

Dated: September 2011

As an employer it's important that you understand all your superannuation obligations.
Common mistakes The Taxation Office sees employers making include:

• paying insufficient super contributions for eligible employees
• missing the quarterly cut-off dates (28 October, 28 January, 28 April, 28 July)
• not understanding that in some circumstances super should be paid for contractors, even if the contractor quotes an Australian business number
• not keeping accurate records
• not passing on an employee's tax file number to their super fund
• not lodging a Superannuation guarantee charge statement if they have not paid their employees' super to the fund by the due date or have not paid the correct amount.

Passing on an employee's tax file number

• You must provide your employee's tax file number to their super fund within 14 days of receiving it.
• If you don't, the employee's super contributions will be subject to extra tax and may not be accepted by the super fund. You may also be penalised.

Super for contractors

• You need to pay super contributions for contractors employed under a contract that is wholly or principally for the contractor's labour, even if the contractor quotes an Australian business number.

More information can be obtained from the Taxation Office: www.ato.gov.au/employersuper
Or call them on 13 10 20 between 8.00am and 6.00pm, Monday to Friday.