Working out if you have to pay superannuation for your workers

It is not always easy to work out when you have to make contributions under the superannuation guarantee (SG) scheme.

Generally, if you pay an employee $450 or more (before tax) in a calendar month, you have to make SG contributions on top of their wages. This includes a family member working in your business.

If your employee is under 18, they must work for more than 30 hours per week to qualify.

You are required to make SG contributions regardless of whether the employee:

  • is full-time, part-time or casual – working holiday-makers are also included;
  • receives a superannuation pension or annuity while still working; or
  • is a company director.

Although you generally don’t need to make SG contributions for independent contractors, you may be required to make contributions for a contractor where the contract engaging them is wholly or principally for their labour.

For more information visit this like to the ATO website – ato.gov.au

Tip! It is not always easy to decide if a person working for you is an employee or an independent contractor. If you are at all uncertain, talk to your tax adviser.

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