PAYROLL CHANGES FROM 1 JULY 2022!
PAYROLL CHANGES FROM 1 JULY 2022!
Removal of the $450 per month wage cap currently in place where you did not have an obligation to pay super contributions – meaning you’ll need to pay super for all employees over the age of 18, no matter how much they worked in a month.
Super is payable for employees under 18 if they work more than 30 hours per week Superannuation Guarantee Charge (SGC) increases from 10 to 10.5% of eligible earnings (ordinary times earnings). Indexation of Study or Training Support loans is set at 3.9%.
Common loans include HECS, VET student loans (VSL), Student Financial Supplement Scheme (SFSS), Student Start-up Loan (SSL), ABSTUDY Student Start-up Loan (SSL) & Trade Support loans (TSL)Your STP should be updated to meet the new rules but be aware that your costs will increase for employee super and workers comp insurance.
WHAT EMPLOYERS NEED TO DO
Provide new employees with a choice of super fund form within 28 days of their start date. Confirm employee’s ‘stapled’ super account if they haven’t provided these details rather than setting them up in your default fund. If a new employee does not provide a completed choice of super fund form, then the employer needs to request employee stapled super fund from the tax office.
Employers will need to lodge a TFN declaration or STP pay event on their single touch payroll (STP) system and the log into their business tax portal navigate to the employees menu and then down to the employees super accounts. Complete the request button on screen and then request an employees super fund. You will need employee’s details. The request should be completed within a few minutes with response. Your tax agent can also perform the tax office function for you.
Employers can use their default fund for an employee only if the employee doesn’t choice their own super fund and no stapled super fund account can be identified by the ATO for that employee. If the super fund does not accept contributions then the employer need to go online and make another request with the ATO call the ATO on 131020 and request an alternative super fund account. If an alternative can not be found the ATO will advise if the employer can then use the default fund or another fund that meets the choice of fund rules
WHAT EMPLOYERS SHOULD NOT DO
You can not recommend a super fund to the employee as you are not a financial advisor. You can help the employee choose a fund by guiding them to the ATO ‘Your Super comparison tool’ YourSuper comparison tool | Australian Taxation Office (ato.gov.au) .
There is also a non-personalised version available on ato.gov.au/yoursuper or a personalised version available to the employee via myGov. In myGov you can see your current super accounts and also links to help consolidate their super accounts which can save on fees and charges and see a comparison tool to other products ranked by fees and investment returns.
