Frequently Asked Questions for Employers
Superannuation Guarantee (SG)
What is the current Superannuation Guarantee rate?
Currently the SG contribution rate is 9% of an eligible employee's ordinary time earnings, which must be paid into a complying super fund (such as MTAA Super).
If your employees work under a specific industrial award or agreement, you are also obliged to contribute in accordance with that award or agreement, for example, you may be required to make additional contributions or to pay those contributions to a specific fund.
What salary should I use to calculate SG?
From 1 July 2008, ordinary time earnings (OTE) as defined in the super guarantee law, must be used when calculating the amount of super you have to pay. You should investigate your own circumstances to ensure that you are using the correct definition for your employees.
An employee must earn at least $450 per month to be eligible for SG. This eligibility test is measured using an employee's gross earnings, not OTE or the earnings base on which their nine per cent contribution is then calculated.
The maximum salary level on which contributions will be based is set each year by the ATO. No super contributions are payable on the part of an employees salary in excess of the maximum level.
Contact us or the ATO to find out what the current maximum salary levels are for any financial year.
Will the Superannuation Guarantee rate change?
The rate changes relatively infrequently. The current SG rate of 9% has been in place since the 2002/03 financial year. The Government has not indicated that the rate will be changed in the near future.
Contributions
When are contributions due?
MTAA Super encourages employers to pay contributions monthly. Payments for the calendar month are due by the 14th of the following month. For example, the contribution for March is due by 14 April.
The legislation states that you must pay contributions at least quarterly. Quarterly payments must be received by the Fund within 28 days following the end of the quarter. Contributions are due by 28 October, 28 January, 28 April and 28 July each year.
Legislation also requires that if you are deducting after-tax salary contributions on behalf of an employee, these must be sent to the Fund by the 28th day of the following month. For example, if you deduct an amount on 15 April, this must be sent to the Fund by 28th May.
Who must I contribute for?
You must pay super if your employee(s) earn at least $450 gross per calendar month. The main exceptions are employees who are:
- under 18 years of age and working less than 30 hours per week.
- aged 70 years and over, or
- performing work of a private or domestic nature for not more than 30 hours a week for a non-business employer.
Please note: You may still be required by a Federal or State award, Industrial Agreement or Employee Contract to pay super for the above employees. You should check your particular circumstances in relation to your employees.
What if I don't pay enough or I am late paying?
If you choose not to pay super for your eligible employees or you do not pay enough super for your employees by certain prescribed dates, you will have to pay a charge called the Superannuation Guarantee Charge (SGC). This charge includes an additional administration fee and interest charge payable to the Australian Tax Office (ATO). These amounts are not tax deductible.
The consequences of contributions not being paid can be serious for the member and their dependants. The insured benefits of members are put at risk when contibution payments are overdue. If a member dies or becomes totally and permanently disabled while an employer is in arrears, the payment of any death or TPD benefit could become the employer's responsibility.
Are there penalties if I do not make at least quarterly payments?
Yes. Failure to make at least quarterly contributions may result in the employer having to pay the Super Guarantee Charge (SGC). This charge includes an additional administration fee and interest charge payable to the Australian Tax Office (ATO). These amounts are not tax deductible and may be in addition to any contributions already paid for that period.
What if I don't need to pay contribution for several months?
You must continue to send Contribution Returns. If you are not making any payments simply write NIL in the relevant space.
New Members
What information do I need from new members?
Joining a new employee to MTAA Super is as simple as filling out your Contribution Return and sending this into MTAA Super with the contribution payment. This should include the employees' full name (including title), date of birth, postal address, the date of commencing employment with you, and their TFN.
If a new employee is already a member of MTAA Super, you will still need to provide all of the above information, including their membership number if you have it.
If the new employee was a member of MTAA Super and has claimed all of their benefit, he or she will require a new membership number. Simply proceed as for a new employee who is not already a member.
Your new employees can also join MTAA Super by filling out a Membership Application. Once complete, this can be returned for processing with your Contribution Return and payment.
Tax File Numbers
Do I have to supply Tax File Numbers?
Where an employee quotes a TFN for employment purposes, you are obligated to pass that TFN to the employee's superannuation fund within 14 days.
Apart from avoiding having penalties imposed on you, supplying your employees' TFNs will also mean:
- your employees will not pay extra tax in relation to their concessional contributions
- they will be able to make non concessional contributions; and
- we will be able to undertake searches for lost super on the Lost Super Register for your employees.
SuperSite
What is SuperSite?
SuperSite is a service for employers that allows them to submit contribution advice, view and change member details and view their SuperSite payment history.
SuperSite is recommended for employers with up to 100 members. There are 5 payment options available to employers who use SuperSite:
- BPAY
- POSTbillpay
- Direct Debit
- EFT
- Direct payment via cheque
How to Register?
As an employer you must complete an application and register to use this service.
Is it Secure?
SuperSite and SuperPhone are secure, with password protection unique to you. Your employee records are totally protected and only accessible through your employer number and unique PIN. When you or your authorised personnel access SuperSite for the first time, you will receive a prompt to change the PIN allocated to you, to one of your own choice. This will ensure peace of mind and make the number easy to remember. After changing the PIN, only the personnel that you authorise will have access to the systems.
Does it Cost Anything?
There is no set up charge to you for SuperSite and SuperPhone. After registering, you will receive a confirmation letter and a Quick Reference Guide, which will take you through these services step-by-step.
More Information
Can my employees make voluntary concessional and non concessional contributions?
Yes, your employees can make voluntary after tax (non concessional) contributions or before tax concessional (salary sacrifice) contributions. Salary sacrifice contributions should be shown in the "Salary Sacrifice" column on the Contribution Return. Member after tax non concessional contributions should appear in the "member voluntary" column on the Contribution Return.
What if a member dies?
If a member dies, their total account balance plus any insured amount will generally be distributed in accordance with their Will and paid to their dependants. If none, their benefit may be paid to their estate or other eligible beneficiaries. Whilst the Trustee will take into account the member's wishes, the Trustee has absolute discretion in determining to whom a benefit should be paid.
Upon joining, members should advise their nominated beneficiaries on the application form. This nomination can also be changed at any time.
A dependant includes the spouse of the member, any children of the member and any person with whom the member has an 'interdependent relationship'. Two people have an interdependent relationship if:
- they have a close personal relationship; and
- they live together; and
- one or each of them provides the other with financial support; and
- one or each of them provides the other with domestic support and personal care
If two people have a close personal relationship but the other criteria above are not satisfied due to the fact that one person suffers from a physical, intellectual or psychiatric disability, they may still have an interdependent relationship.
What Eligible Rollover Fund (ERF) do we use?
Small account balances that have not received an employer contribution for more than twelve months may be transferred to AUSfund – Australia's Unclaimed Superannuation Fund
What if I cease trading?
Simply write to us and tell us the date the business was sold or when you ceased trading. All contributions must be paid up until the date of sale or when trading ceased.