Superannuation Update for Employers - Effective 01/07/2022

Are you aware of the changes to Superannuation Guarantee (SG) coming into effect on 01/07/2022? As an employer, you’ll see an increase in superannuation being paid to your employees. The rate is being increased from 10% to 10.5% and the $450 minimum monthly earnings is also being removed which means superannuation will be paid on every dollar earned. This is a huge change for employees working less hours or working across multiple jobs.  

What does this mean for you as an employer?

Besides preparing for an increase in superannuation expenses, these changes require you to run a few checks:

· Are your employee contracts inclusive or exclusive of superannuation?

· Is your payroll software updating the rate and removing the minimum monthly earnings? If you selected to apply the default SG rate for your staff during their profile setup then most softwares will remove the $450 minimum earnings and update the new superannuation rate. However, if you’ve manually entered the rate previously then you’ll need to manually update this.

· Do you have up to date superannuation details for all your staff, particularly those you haven’t had to pay superannuation to recently?

If you’d like assistance conducting these reviews or would like to chat more about our bookkeeping services, please get in touch!