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What is Superannuation Guarantee?

By January 13, 2024No Comments

Superannuation Guarantee (SG) is a legislated super contribution that employers must make on behalf of their employees. There are few things to know about SG:

  • SG only applies to employees, so if you’re self-employed, you don’t need to make any payments for yourself
  • SG applies to all types of employees: casual, part-time and full-time
  • SG also applies to Director Fees and some Contractors
  • SG is 11% (2024 Financial Year rate) of Ordinary Time Earnings, being regular Salary/Wages and some allowances
  • SG must be paid quarterly, within 28 days after the end of each Quarter:
    • Quarter ending 31 March requires payment by 28 April
    • Quarter ending 30 June requires payment by 28 July
    • Quarter ending 30 September requires payment by 28 October
    • Quarter ending 31 December requires payment by 28 January
  • You can pay Super directly to the funds using their internal reporting, or use a Clearing House, such as ATO’s own Small Business Superannuation Clearing House
  • If you miss the deadline, or short-pay your employees, you fall into Superannuation Guarantee Charge (SGC) regime. This means that you must make a SGC report for the Quarter and make the payment to ATO instead of the funds. SGC payment is also non-deductible

BTMH looks after Superannuation Guarantee for all our payroll customers. Contact us if you wish to discuss your requirements or obtain a quote.

Thomas Murmylo

Thomas is the Principal Tax Agent at BTMH. Unlike most in the accounting industry, Thomas takes a different approach when it comes to the management of his clients’ taxation and accounting needs. Thomas has helped local and international businesses to grow and prosper for more than 30 years.