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What you need to know as an employer

Unless an industrial award prescribes a particular fund, you can elect Intrust Super to be your Employer Fund (or 'default fund'). This is the superannuation fund that you contribute to for eligible employees who don't choose their own fund.

By choosing Intrust Super as your default superannuation fund, you'll enjoy a number of employer benefits and will also save time by minimising the number of funds you deal with.

Intrust Super is a complying superannuation fund that meets all the requirements of an Employer Fund:

  • We provide minimum levels of life insurance.
  • We accept employer contributions.
  • We are registered as a complying fund with the Australian Prudential Regulation Authority (APRA).

 

Which employees do I need to pay superannuation for?

Under the superannuation guarantee (SG) legislation, employers must contribute a minimum level of superannuation for their employees who meet the following criteria:

  • Earn at least $450 in a calendar month (or a lesser amount if specified in a relevant award - please check if an award applies to your company).
  • Are aged less than 70 years (unless contributions are mandated after age 70).
  • Are aged over 18 or, if under age 18, are working at least 30 hours per week.

Once an employee reaches age 65:

  • You can only make contributions to their superannuation if they are made as a result of an industrial award or SG obligation (i.e. a mandatory contribution).
  • They will also have to complete a Work Test Questionnaire confirming that they have worked at least 40 hours in a period of no more than 30 consecutive days during the same financial year.

Once an employee reaches age 70:

  • You can no longer contribute to their superannuation unless the contributions relate to salary paid before they turned 70.

 

How do I calculate how much superannuation I need to pay?

The minimum SG level is equal to 9% of each employee's ordinary time earnings (i.e. the amount they earn for their ordinary hours of work). This includes:

  • over-award payments
  • commissions
  • shift-loading
  • allowances
  • bonuses.

For more information about ordinary time earnings and your SG obligations, please visit the ATO's website at http://www.ato.gov.au/.

 

What if Intrust Super isn't named as a default fund under my award?

Most industrial awards and similar workplace agreements require employers to make superannuation contributions for the benefit of their employees. This sometimes includes naming the fund where employer contributions must be paid. Awards may also permit your employees to choose their own superannuation fund.

If Intrust Super isn't named as a default fund under your award, you can still contribute to your employee's Intrust Super account. They simply need to complete a Standard Choice Form.

If you were contributing to Intrust Super before 12 September 2008, you can continue to contribute to Intrust Super for any existing or new employees. Find out more about how to sign-up new employees here.

 

Your Choice of Fund obligations

Under 'Choice of Fund' legislation, employers have a number of obligations:

  • You must ensure that your eligible employees are aware they can choose their superannuation fund, and you must provide them with a Standard Choice Form. When new employees start, you have 28 days from the day they start work to give them the form.
  • If your employee does not want to exercise their right to choose their superannuation fund, you should ensure you have a default Employer Fund, such as Intrust Super, so you can easily set-up an account to pay their contributions into.

Once you start paying contributions into your employee's chosen fund, there are some ongoing obligations:

  • You must allow your eligible employees to change where their superannuation is paid once every 12 months.
  • You also need to keep records of their choices and evidence that you have offered your eligible employees a choice of super fund.

 

We're here to help

As your default Employer Fund, we can help you every step of the way:

  • Your dedicated Client Service Manager will provide ongoing support and training, and can explain anything you're unsure of, including which of your employees are eligible to choose their own fund.
  • We can also provide you with information to give to your employees to help them make an informed decision.

Find out more about how to join Intrust Super here.