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Casual employees may be entitled to super

Employing casual workers provides businesses with an increased level of flexibility. However, it’s important to remember that casual employees may be entitled to super.

Here’s the basics:

  • You may need to pay super guarantee (SG) regardless of whether your employee is full-time, part-time or casual.
  • If you pay your employee $450 or more (before tax) in a calendar month, you have to pay SG on top of their wages.
  • If your employee is under 18 they must also work for more than 30 hours per week to qualify for SG.

Super guarantee is currently calculated at 9.5% of a casual employee’s ordinary time earnings. This includes their wage plus any casual or shift loadings for ordinary hours of work. It also includes commissions and some allowances, but it doesn’t include overtime payments.

Use our SG eligibility tool to work out if your casual workers are eligible for super.

 

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Simple steps to getting super right

Getting super right is an important part of being an employer. To help, listed are five simple steps to check you’re getting it right:
1. Check you’re paying for the right people. You need to pay super for all of your eligible employees. Most employees and some contractors are eligible for super.
2. Check you’re paying the right amount. Currently you need to pay 9.5% of your employee’s ordinary time earnings.
3. Check you’re paying on time. You need to pay super at least quarterly. Some super funds, awards or agreements may require more frequent payments.
4. Check you’re paying to the right place. You must pay super into a complying super fund or Retirement Savings Account. Most employees can choose their own fund.
5. Check you’re paying the right way. All employers must use SuperStream when paying super. This means you pay your employees’ super and send all their information electronically though one channel. It’s easier and will save you time.

 

And of course, you need to keep records to show how much you’ve paid, when you paid, and that you offered a choice of fund.
The Australian Tax Office has a range of online tools and calculators to help you with super.
Use the links below to Find out about: Super for employers Ordinary time earnings

 

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