Are you an employer? Are you up to speed with the scheduled superannuation guarantee increase? Here are some key points you need to know.
- From 1 July, superannuation on employee wages is increasing to 10%.
- Check your employee contracts/agreements, and importantly, your payroll system, to make sure you capture this increase.
- If your employee’s base salary is outlined as exclusive of super, or if they are paid as per a modern award, you will need to increase super contributions by 0.5% (from 9.5% to 10%).
- If your employee’s contract states their salary as inclusive of super, ensure you are meeting the minimum contribution requirements. If you are, you are not required to make changes. However, if you are not, it could mean that the employee’s take-home pay decreases (as they are on a remuneration package agreement).
- Make sure you consider how you will implement any changes in advance.
- And, most important of all, don’t forget to communicate any changes with employees before 1 July 2021.
Do you need some help understanding your employer obligations? For advice specific to your business, get in touch with Lisa at firstname.lastname@example.org or Nick at email@example.com, or call (07) 46383599 to book your free, one-hour, no-obligation HR consultation.