It is your responsibility as an employer to set up your business to pay super into your eligible employees’ chosen super funds or their stapled super fund where no choice has been made.
If your employee hasn’t made a choice and doesn’t have a stapled super fund, you can contribute their super to your default super fund.
What you need to do:
If you pay extra super for an employee:
To create an effective salary sacrifice arrangement, you must:
The arrangement must be set up for your employee’s future earnings. It can’t include previously earned or accrued:
You and your employee must prepare and sign a document that states the terms of the salary sacrifice arrangement. If you don’t have this documentation, it may be difficult to establish the facts of your arrangement.
Employees can renegotiate the arrangement at any time, within the terms of their employment contract or industrial agreement. If your employee has a renewable contract, you can renegotiate the salary sacrifice amount before the start of each renewal.
The salary sacrifice amount must be contributed to a complying fund for the period of the arrangement.
Contributions can’t be accessed until the employee satisfies a condition of release, such as reaching retirement age.
Reportable employer super contributions (RESC) are not included in your employee’s assessable income. They do not affect the way you calculate super contributions for your employees.
The following employer super contributions are reportable:
You must report extra contributions if:
The extra contributions are reportable super contributions for employees unless you show that: