Are You Paying Employees the Right Amount of Super?

Are You Paying Employees the Right Amount of Super?

As an employer, you have countless responsibilities to keep your business thriving. Amidst the hustle, it’s crucial not to overlook one of your fundamental obligations: paying superannuation contributions for your employees. While serving employee benefits, superannuation reigns supreme. It is something that can be termed the cornerstone of financial security for Australian workers in their golden years. But are you confident that your business is doing its part?

In this blog post, we will peel down the layers of superannuation, through which you as an employer can know whether you are paying your employees the right amount of super. So, let’s begin! 

What is Superannuation?

In Superannuation, the employers contribute a percentage of their employees’ earnings to a super fund. This fund is designed to accumulate over an individual’s working life and provide income in retirement. The minimum superannuation guarantee (SG) rate is 10.5% of an employee’s ordinary time earnings and is expected to touch 12.5% by 2025. 

Who are Eligible for Superannuation?

  • Employees who are above the age of 18 or those who are under 18 years of age and work 30 hours a week are entitled to super contributions.
  • Some contractors, and independent contractors may also be eligible.

Super Guarantee Contribution

So as explained earlier, employers have to contribute a minimum percentage of an employee’s earnings to their chosen super fund. The ongoing SG rate is 10.5% which is of course supposed to increase in the coming years so make sure you stay updated with the latest rates. The rate is dependent on ordinary time earnings, which of course is the wage, commission, and a few allowances but excludes overtime pay. 

Importance of Super

Superannuation is something that is a solid part of retirement planning in Australia. It basically ensures that people save some money or build up their total income so that they can easily live their lives in later years. This scheme is a compulsory one so employers legally have to contribute to their employees’ super accounts.

Super Contribution Deadlines

Employers must make super contributions on behalf of their employees at least four times a year. So that’s paying quarterly. The date starts from the day employees start working for you. The payment due dates will go quarterly.



Payment due date


1 July – 30 September

28 October


1 October – 31 December

28 January


1 January – 31 March

28 April


1 April – 30 June

28 July

How To Check If You Are Paying the Right Amount of Super?

As an employer, you can know if you are paying the correct amount of super by using the ATO’s SG calculator. This calculator is available on the ATO website. In this calculator, you have to fill in information about your employees, such as their names, tax file numbers, and earnings. And then it will calculate the amount of SG that you need to pay for each employee. If you are unsure of how to use the calculator, you can contact the ATO for assistance.


So that brings us to the end of this blog post. We have now understood how important the super contribution is. As an employer, if you fail to meet superannuation obligations, you might end up in penalties and charges. The penalties can include fines, interest charges, and legal action as well. And if you require any assistance with superannuation, you can consult KPG Taxation which is a reputed company that offers complete support for all your superannuation needs. It has expert tax accountants who can build your way so that you can pay your employees the right amount of super. 

Consulting with KPG Taxation

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