Your super responsibilities
You play an important role in helping your employees save for the future.
Your super obligations
How much super you need to pay your employees.
Are you an employer?
Under super laws, if you employ someone through a verbal or written contract — full-time, part-time or on casual basis — you’re an employer and must pay super for your employees. You may also need to pay super contributions for certain independent contractors. Find out more at the ATO website.
What are your super responsibilities?
To help your employees save for their retirement, you must also meet certain super responsibilities.
As an employer, you must:
- pay super for your eligible workers
- pay the right amount of super to the right place at the right time. Find out how
- nominate a default super fund
- pass on your employees’ tax file numbers to their super fund/s
- keep records
How much super do I need to pay?
The amount of super you need to pay your employees is set by the government. Currently the superannuation guarantee (SG) rate is 9.5% of your employee’s gross salary, though this may change over time. Find out more. The SG contribution you make for your employee is in addition to your employee’s salary.
What's a default super fund?
It’s the fund you pay super into for employees who can't or don't choose their own fund.
As an employer, you must nominate a default super fund for your employees. This is the super fund you’ll pay SG contributions into for any employees who don’t choose a super fund or make a choice that isn’t valid.
Which super funds are eligible to be your default fund?
Your default fund needs to be a complying fund that’s authorised by the Australian Prudential Regulation Authority (APRA) to offer a MySuper product.
A MySuper product needs to offer default Death and Total and Permanent Disablement (TPD) insurance on an opt-out basis that meets certain minimum requirements.
Spirit Super is a complying fund and MySuper authorised, so we’re eligible to be your default super fund.
We offer many benefits for our members, including default Death and TPD insurance that exceeds the minimum requirements. We’re also here to provide you as much or as little support as you need to meet your super responsibilities quickly and easily.
Make Spirit Super your default fund
Tax file numbers
Pass on your employee’s tax file number to their super fund.
What you need to do
When your employee gives you their tax file number (TFN), you must pass it on to their chosen super fund, either:
- on the day you first make a super contribution for that employee, or
- within 14 days of receiving it, if not available at the time of the first contribution.
You must also ensure any third parties that manage your payroll or distribute super contributions pass on TFNs to other super funds too.
Tip: if you don’t provide an employee’s TFN to their super fund, they may pay extra tax on their contributions, won’t be able to make personal contributions and will miss out on government super incentives. You may also face penalties.
How do you give an employee’s TFN to their super fund?
You can provide TFNs through your usual payment method, such as a clearing house or your payroll provider. Simply add your employee’s TFN to their details when you next make a contribution.
To supply a TFN for an employee with a Spirit Super account, give us a call on 1800 005 166.
Records and reporting
Keep records of your super payments for at least five years.
What records do you need to keep?
You need to keep records to show you've satisfied your SG obligations, including details of how much you paid in SG contributions for each employee and how you calculated the amounts.
You'll also need to show that you've offered any eligible employees their choice of super fund.
Even if you're using a clearing house, you'll still need to keep your own records. Make sure you keep your super records for at least five years.
Reporting super contributions
When you're preparing the annual payment summaries for your employees, include the amount of any extra super contributions you've made for them where:
- the amount is more than your compulsory SG and award obligations, and
- the employee can influence the amount you've contributed.
This is referred to as reportable super contributions. Reportable super contributions (such as salary sacrifice contributions) are part of the income tests for some government benefits and obligations. They aren't included in an employee's assessable income and don't affect how you calculate their super contributions. Find out more at the ATO website.