Ellco Group - Accountants & Advisors

Wages & Employee Superannuation

Wages

Minimum wages depend on a person’s job description/title and the industry that they work in. To ensure that your business is complying with these you will need to contact Fair Work to guide you to the Awards. These awards show the minimum wage, penalty rates, overtime, allowances, and apprentice and trainee pay obligations.

Employers are legally obligated to keep records for seven years about employee's including

Superannuation

From 1 July 2014 employers are required to pay 9.5% superannuation contributions on behalf of their employees who earn $450 or more per month and are over 18. If your employee is under 18 they need to earn more than $450 per month and work over 30 hours per week. Employers calculate the super contributions based on ordinary time earnings.

You must make payments at least 4 times a year (some employers choose to pay employee superannuation monthly to help with cashflow) by the due dates. Follow is the due date for superannuation contributions and if employers do not meet this deadline interest penalties and fines will be applied; No extensions will be granted by the ATO.

To assist employers with meet their employer superannuation obligations they have created Small Business Superannuation Clearing House (SBSCH) an online program. This system save you from logging into each employee's superannuation fund and now you can pay one amount and the SBSCH will disburse it for you.



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