Super Toolbox
Frequently Asked Super Questions for Employers
SUPER GUARANTEE
How do I nominate MTAA Super as my default fund
You can nominate MTAA Super as your default fund by providing the Standard choice form to your employees. Eligible employees can choose their own fund, but if they do not make a choice or their choice cannot be implemented, you can pay superannuation guarantee contributions for them to the default fund.
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 super fund.
What is ordinary-time earnings?
Ordinary-time earnings are the salary or wages paid to employees for their ordinary hours of work, not including overtime. It includes over-award payments, bonuses, shift allowances, commissions and paid leave. For an explanation of ordinary-time earnings, go to the Australian Taxation Office website, www.ato.gov.au or call the ATO Superannuation Infoline on 13 10 20.
SUPER CONTRIBUTIONS
Who must I contribute superannuation for?
The Superannuation Guarantee legislation requires that you make superannuation contributions for your employees who:
- are between 18 and 69 years of age
- work full-time, part time or on a casual basis; and
- earn $450 or more (before tax) in a calendar month.
You also have to pay super for an employee who:
- is under 18 years of age;
- earns $450 or more (before tax) in a calendar month; and
- works 30 hours or more in a week
What if I don't need to pay super contributions 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 simple. Complete your contribution return and include the employees' full name (including title), date of birth, postal address, the date of commencing employment with you, and their TFN. Send this to MTAA Super with the contribution payment.
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.
MORE INFORMATION
Can my employees make voluntary concessional and non concessional super 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 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.
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 super contributions must be paid up until the date of sale or when trading ceased.