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On 1 July 2022, a superannuation guarantee increase was put in place for all employees. This saw superannuation payments increase to a 10.50 per cent from the previous 10 per cent.
Last year was the first superannuation increase for employees since 2014. So, if you’re a business owner what does this mean for you and your employees?
Superannuation is the money you pay eligible workers to help fund their retirement.
The Super guarantee is the minimum amount you must pay to your employees every quarter.
This payment will remain at 10.50 per cent for the 2022/2023 financial year. This is due to steadily increase to 12 per cent in 2025.
As of 1 July, all employees will be eligible for the super guarantee, including part time and casual employees. This will happen regardless of how much one earns. Previously there was a $450 per month minimum for employees to be paid super, but this has now been removed.
However, if an employee is under 18 years of age, they only receive super if they work more than 30 hours in a week.
If you’re a business owner, the super guarantee increase means you’ll need to increase the amount you pay your employees every quarter to 10.50 per cent.
You will need to use the new rate to recalculate the amount you pay and ensure all employees are being paid super, on all eligible ordinary times earnings.
For employees on a salary package inclusive of superannuation, business owners will need to check that the increase does not end up reducing the employee’s salary or wages below any applicable Modern Award. By doing this you would breach the minimum wage as decreed by the Fair Work Ombudsman.
This is just one change business owners need to be aware of as we continue through the 2022/2023 Financial Year.
If you’re concerned about how much super you need to be paying your staff, we can help. As HR and payroll specialists, we can assist with updating your payroll and accounting systems to correctly balance your employee super payments.
We’ll take the stress out of handling the payments so you can feel confident your staff are receiving the right super guarantee in line with the super guarantee increase.
Outsource your bookkeeping and HR by enlisting the professionals. Get in touch with us today so we can help make the end of financial year as smooth as possible for you.
