Get ready for changes to super guarantee
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
These changes mean that from 1 July 2022:
- you’ll need to make SG contributions at the new rate of 10.5%
- employees can be eligible for SG, regardless of how much they earn. You may have to pay SG for the first time for some or all of your employees.
The ATO is working with digital service providers (DSPs) to make sure payroll software is updated in time. Updated online tools and calculators will be available to help from 1 July 2022.
If you use a tax agent, we are also aware of these changes and able to assist you.
3 things 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, review the Stapled Super Fund information for guidance on what you need to do next. (A stapled super fund is an existing super account linked to an individual employee.)
Payroll Solutions For Progressive Businesses!
Running your own business is time-consuming and who wants to spend their evenings entering sales data, doing payroll, matching invoices to payments and generally doing the financial admin for your business?
Speak to us; we can offer you affordable, reliable bookkeeping services that not only ensure your financial data is up-to-date but also that it’s correctly coded saving you money on your end of year financial returns. Contact Omnis Group Business Accountants on 08 9380 3555 for a free, no-obligation quote.
Source: ATO