Work out when employers need to pay super guarantee and which employees are eligible.

When super guarantee is required

If you pay a worker, you are also required to pay them super guarantee:

• Amount of pay – you pay it regardless of how much they are paid – their earnings amount is not relevant.
• Employee age – for employees who are
• 18 years or older, you pay it regardless of how many hours they work
• under 18 years old, you pay it if they work more than 30 hours in a week.
• Rate – the super guarantee rate is 11.5%.
• What it is calculated on – if you
• pay on time, use their ordinary time earnings (OTE) to work out the minimum contribution (OTE is the amount you pay employees for their ordinary hours of work.)
• miss it or make a late payment, use their salary and wages to work out how much super guarantee and super guarantee charge to pay.

Earnings amount is not relevant

Before 1 July 2022, you did not have to pay super guarantee for a worker earning less than $450 a month. You now have to pay super regardless of their earnings.

Eligibility

Generally, all employees are eligible for super guarantee. It doesn’t matter if the employee is:

• full time, part time or casual
• receiving a super pension or annuity while working (this includes employees on transition to retirement)
• a temporary resident, such as a backpacker
• a company director
• a family member working in your business.

Employees under 18

You must pay super guarantee on payments you make to an employee under 18 years old if they work for you for more than 30 hours in a week, regardless of how much you pay them. Their earnings amount is not relevant

As discussed in Superannuation Guarantee Determination SGD 93/1, the number of hours worked is the actual number of hours the employee works in that week. You can’t average the hours across fortnightly or monthly pay periods.

Domestic or private workers

A domestic or private worker does work:

• relating personally to you (not to a business of yours)
• relating to your home, household affairs or family – such as a nanny, housekeeper or career.

You must pay super guarantee on payments you make to domestic or private workers if they work for you for more than 30 hours in a week, regardless of how much you pay them. Their earnings amount is not relevant.

NDIS plan

• You must pay super for independent contractors if you pay them mainly for their labour. This is the case even if they quote an Australian business number (ABN).
• Their earnings amount is not relevant.

Independent contractors

You must pay super for independent contractors if you pay them mainly for their labour. This is the case even if they quote an Australian business number (ABN).

Their earnings amount is not relevant.

International workers

Your worker is eligible for super guarantee even if they are a temporary resident, such as a backpacker or a working holiday maker.

If you send an Australian employee to work temporarily in another country, you must continue to pay super contributions for them in Australia.

If you have employees working overseas, you can apply for a certificate of coverage so you don’t have to pay super in the other country as well.

However, you don’t have to pay super for:

• non-resident employees who work outside Australia
• some foreign executives who hold certain visas or entry permits (phone us on 13 10 20 for information)
• employees temporarily working in Australia who are covered by a bilateral super agreement – you must keep a copy of the employee’s certificate of coverage to prove the exemption.

If you’re a non-resident employer, you don’t have to pay super for resident employees for work they do outside Australia.

Self-employed

If you’re self-employed as a sole trader or in a partnership, you don’t have to pay super guarantee for yourself.

Armed forces reservists

You don’t have to pay super guarantee for members of the army, naval or air force reserve for work carried out in that role.

High income earners who opt out of super

You don’t have to pay super guarantee for high-income earners working for multiple employers who ask you not to pay it to them.

You must have an SG employer shortfall exemption certificate for the employee. We will send you the certificate after the employee has applied to us to opt out.

If you have any questions, feel free to ask them in the comment section. We will be happy to answer all your queries.