Superannuation Guarantee – Reminder 28 October 2010 - October 2010

THIS QUARTER DUE DATE IS 28th OCTOBER 2010

We remind employers that they have an obligation to pay a minimum level of superannuation for each quarter within 28 days after the end of each quarter for most employees. If superannuation is not paid on time the employer risks having to pay a non tax deductible superannuation guarantee charge which includes interest and penalties.

HOW MUCH IS PAYABLE?

Employer superannuation contributions are a minimum of 9% of the employee’s ordinary time earnings. The maximum required to be paid by law per employee per quarter is $3,799.80 (2010/2011)

EXCEPTIONS

Superannuation guarantee contributions do not have to be provided for:

  • Employees paid less than $450 in a particular month
  • Employees aged 70 or more
  • Employees under 18 working part time (i.e not more than 30 hours per week)

PAYMENTS INCLUDED IN ORDINARY TIME EARNINGS

  • Earnings for ordinary hours of work
  • Sick leave and long service leave
  • Allowances – exclude expense reimbursements and fringe benefits
  • Commissions or bonuses that relate to specific performance criteria
  • Directors fees

PAYMENTS NOT INCLUDED

  • Bonuses that do not relate to specific performance criteria (e.g Christmas bonus)
  • Payments in lieu of notice, redundancy and termination payments
  • Dividends
  • Partnership and trust distributions

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