How much super do you need to pay?
With the super guarantee rate rising from 9.5% to 10% on 1 July 2021, you might be wondering how much super you need to pay your employees.
The rate you use to calculate super contributions will depend on which quarter you pay your employee. It doesn’t matter if the the work is performed in a different quarter.
This means you’ll need to calculate your super contributions at the rate of:
- 10% on all salary and wages you pay to employees on and after 1 July 2021
- 9.5% on all salary and wages you paid to employees before 30 June 2021.
For example, for the fortnightly pay period starting 24 June 2021 and ending 7 July 2021, Sue earns $4,500. She is paid on 8 July 2021. The minimum super guarantee contribution for Sue for the pay period is 10%, so Sue’s super for the quarter is:
$4,500 × 10% = $450
Information and further examples are available on our website. It’s important you pay your workers the correct amount of super.
Remember, registered tax agents and BAS agents can help you with your tax.
If you need some guidance for your business, feel free to drop us a message so we can schedule a one-on-one consultation.