With the end of the financial year starting to sneak up on us, consideration needs to be given to superannuation contributions made for employees by business owners.
For concessional superannuation contributions to be deductible (to the employer and/or member in a particular financial year) contributions must be received by the complying superannuation fund on or before 30 June.
Remember, if you have more than one fund, all concessional contributions made to all of your funds are added together and counted towards the concessional contributions cap.
Paying super is an important part of being an employer so it pays to keep a few things in mind when it comes to ticking all the boxes including;
- Some contractors may be entitled to super
- Currently you need to pay a minimum of 9.5% of their ordinary time earnings.
- Check you're paying on time.
- It's tax deductible against your business income.
- At a minimum, pay super quarterly.
- If you don't pay on time, you need to pay a superannuation guarantee charge, which is not tax deductible.
- Check you're paying to the right place.
- Pay super into your worker's fund of choice.
- If they haven't given you the details, pay it into your default fund
Other things worth your consideration;
- Please keep in mind that 30 June, 2019 falls on a Sunday
- When using a clearing house to pay employees superannuation contributions it can take a number of days for the complying super fund to receive the contribution
- Maximum concessional superannuation contributions (where a tax deduction is claimed) for the year ending June 30, 2019 is $25,000.
- Maximum non-concessional superannuation contributions (where no tax deduction is claimed on superannuation contributions) for the year ending 30 June, 2019 is $100,000 (some people may be able to use the three-year 'bring forward' rule and contribute up to $300,000)
- There are special rules for members over 65 years of age
- There are limits to non-concessional superannuation contributions depending on member total superannuation balance