Home – New Forums Money matters Procedure for paying Superannuation

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  • #990005
    dean11
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    I will have an employee working one day per week. Total wages will be $600+ per month so I have to pay super for the employee.

    What is the procedure for doing that?

    Thanks

    #1174878
    TehCamel
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    obtain an employer account with the superfund (ask the employee which they wish to use, you cna’t force one on them)
    then ask the superfund how you pay into it (you only pay it quarterly)
    keep track of the amounts you need to pay in your payroll system
    report them on the BAS or anything else as necessary

    #1174879
    NM Books
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    You’re best getting a choice of super form (found on the ATO website) rather than just asking the employee.
    Definitely keep track of all payments in your payroll system so reporting both super and PAYG is easier. You may also need to look at registering for PAYG withholding. This can be done by your tax accountant.
    PAYG is reported on your BAS quarterly (if that’s how you’ve chosen to report, and assuming you’re registered for GST)
    Contact the super fund for paying the super.
    Hope this helps.

    #1174880
    dean11
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    Thanks, People,
    That sounds fairly straightforward

    #1174881
    Clearly Creative
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    We have 10 employees combined for the two businesses we run and I have found ringing and chatting to the superfund employees to be a fairly painless experience.

    They are generally quite helpful.

    Most funds I log in and enter the contribution details and then transfer the money using the details they provide.

    I use Xero (accounting software) which calculates the super amounts allocated to each employee.

    Then each quarter I run the report for the previous quarter and use the amounts given.

    Bear in mind if the employee decides to contribute out of their pay this is due monthly not quarterly.

    #1174882
    dean11
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    Thanks Clearly Creative
    this is so helpful.
    I will alert my employee to the fact that if she wants to pay in extra money that is done on a monthly basis, not quarterly.
    It turns out she does not have a super fund already, so I am waiting for ATO to mail the appropriate forms in which I will recommend a fund from the list they provide
    Thanks again

    #1174883
    MyGreatIdea
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    Personally, I prefer to use the Superannuation Clearing House.

    While the setup and adding details takes around 10-15 minutes per employee, once that’s done it’s one lodgement at the end of the quarter and one payment.

    Something to consider should you add another employee.

    I’m sure I’ve read somewhere that this is going to be compulsory by July 2015 anyway?

    Wendy :)

    #1174885
    dean11
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    Thanks Wendy

    Sounds like the best way to go.

    At the moment, any one I employ (lawn mowing) disappears after one day or less so we don’t get round to super.

    Thanks

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