What is the Superannuation Guarantee (SG)?
A compulsory amount that an employer must pay into any eligible employee’s chosen super fund. The guarantee has remained stagnant at 9.5% since July 1st 2014, despite CPI increases year on year. This rate is due to increase to 10% on the 1st July 2021 and is earmarked to continue to increase to 12% in July 2025 pending government approval.
How does SG affect me?
- It’s a compulsory obligation to calculate and process superannuation for your eligible employees based on their ordinary time earnings (OTE) – this can include certain thresholds, allowances, bonuses and leave
- Deadlines for payments to hit employees accounts (28 days post quarter) are strictly enforced – penalties include back payment and interest
- Through the ATO’s newly implemented ‘Single Touch Payroll’ reporting method, SG contributions must be provided inline with each pay run
As an employee:
- Ensuring you’re receiving the SG payable by your employer by each deadline
- Checking your super is calculated correctly based on your ordinary time earnings
At Bespoke Payroll, we stand by our commitment to deliver streamlined HR & Payroll functions for all business sizes. From basic implementations, through to fully managed and integrated HR & Payroll systems, we’ve got you covered. Through a partnership approach, we’re here to help your business grow by simplifying back office tasks.