When do you need to pay Superannuation?
22 October 2019
If you’re an employer, it’s vital you understand your obligations when it comes to superannuation.
As a general rule, if an employee earns $450 or more (before tax) in a calendar month, they are entitled to superannuation.
Contractors may also be eligible for superannuation, even if they quote an ABN. More information on paying super to contractors can be found on the ATO website.
If an employee is aged under 18 years, or if they are employed in private or domestic work, they must also work for more than 30 hours per week to be eligible for superannuation. For more information on what qualifies as domestic work, head to the ATO website.
Super must be paid regardless of whether the employee:
- is full time, part time or casual
- receives a super pension or annuity while still working
- is a temporary resident
- is a company director
- is a family member working in your business (as long as they are eligible for super guarantee)
Get in touch with the team at Shakespeare on 9321 2111 if you would like to discuss how this may apply to your individual circumstances.
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