From 1 July 2022, two important super guarantee (SG) changes will apply to your business. These are:
- The rate of SG is increasing from 10% to 10.5%
- The $450 per month eligibility threshold for when SG is paid is being removed.
What this means for you as an employer
These changes mean that from 1 July 2022:
- You’ll need to make SG contributions at the new rate of 10.5%
- Employees over the age of 18 will be eligible for SG, regardless of how much they earn. Those under 18 will still only be eligible for SG if they work more than 30 hours per week. Be aware, you may have to pay SG for the first time for some or all of your employees.
Your payroll software providers are working on this change to make sure payroll software is updated in time.
If our Bookkeeping team are responsible for processing your payroll, rest assured we will be on top of this change for you. We will be reviewing our payrolls and requesting any further information well in advance of this change to ensure you, the employer, remain compliant.
If you manage your own payroll, please ensure you make the necessary changes in your software. Your software provider will advise you of what needs to be done, however should you require assistance with this please call our office and a member of our bookkeeping team will be happy to help.
In Summary – What you need to do
Check that your software is updated to correctly calculate your employees’ SG entitlement from 1 July 2022.
If the removal of the $450 threshold means you’ll be paying SG for one or more employees for the first time, you’ll need to give them a Standard Choice Form.
If your employee does not provide you with a choice of super fund, we will be happy to assist you to access the Stapled Super Fund information on the ATO Portal. A stapled super fund is an existing super account linked to an individual employee.
And Don’t Forget!
For contributions to be counted in the 2021-22 financial year for tax purposes, they must be received by the super fund on/by 30 June 2022. Payroll services and clearing houses typically take up to 2 weeks to do the bank transfer to the individual super funds. Make sure you transfer to your clearing house allowing enough time for your payments to clear.
Remember, we are here to help!
