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  • #973058
    merryfield
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    Hi all, we have been running a cleaning business in WA for the last 3 years.

    Recently we have taken on a casual employee.

    We have already sorted out the worker’s compensation, but have a couple of questions regarding other requirements.

    1. With regards to superanuation, is it just a case of paying 9% of the employees quarterly pay into an employee selected fund?
    So if the employee earns $8000 for the quarter before tax is taken out, $720 goes into the super fund?
    If we pay an employee for using their own car, is superannuation paid on that allowance as if it is normal income?
    Is there a minimum amount of super to be paid?
    I know this info is probably all spelled out on the ATO website, but the jargon on that site gets confusing.

    2. Prior to having an employee, we just had our quarterly BAS to worry about. Apart from the quarterly PAYG instalments that need to be made for the employee, are there any other requirements or reporting that needs to be done.

    Appreciate any advice.

    #1059499
    taxpert
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    Hi Merryfield,

    1. Yes, that is correct – you need to pay 9% of the employee’s quarterly wage (the total gross amount, not the net amount after tax is withheld) into their selected fund by the 28th of the month following the end of the quarter (so 28th of April for the quarter ended 31 March)

    2. Correct again – superannuation should be paid on the allowance.

    3. Yes there is a minimum – if your worker is receiving a wage of less than $450 in a month you don’t need to pay super. Also, if your worker is under 18 years of age and not working more than 30 hours per week you don’t need to pay super.

    4. When you say “PAYG instalments that need to be made for the employee” do you mean PAYG Withholding? They are actually two different things.

    You should withhold a portion of the employee’s salary and pay that to the ATO on your activity statements (as well as reporting the total salary payments). Other reporting requirements include providing your employee with a payment summary (also known as a group certificate) at the end of the year so they know what to include in their tax return and providing the ATO with a copy of all employee’s payment summaries and an annual summary that shows total wages paid and taxes withheld for all your employees.

    I suggest you check out my forum post from about 5 days ago titled ‘Things you may not have known about employee super”. If you still have further questions don’t hesitate to ask.

    Cheers,

    Simon

    #1059500
    StellarScott
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    Not all allowances are subject to the superannuation guarantee

    Any allowance that is expected to be fully expended eg a motor vehicle allowance paid as a reimbursement per km would not be subject to SGC

    See here for the list

    http://www.ato.gov.au/businesses/distributor.aspx?menuid=0&doc=/content/39205.htm&page=3#P38_3481

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