changes to employee superannuation - payroll

Nothing better to do that muck about with payroll?

Sadly though, here’s something else to manage.

The 2021 Budget confirms the new super rule for employees. It means that where business did not have to pay super for staff earning less than $450 a month, that threshhold has been dropped to $200 a month, at the standard rate. And the government is going ahead with its schedule to raise employer super contributions to 12 per cent of wages.

The first of the increases (to 10%) is on 1 July 2021.

And while it can be as simple as increasing to compulsory super from 9.5% to 10%, there are some restrictions around whether you can reduce take home pay to compensate.

And there’s also a change to the minimum monthly threshold from $450 to $200. Keep in mind that might not be all.

While there will be changes made to your payroll software by all good providers, some circumstances will need some manual intervention.

Be mindful too, there are changes to the “closely held employee” exemptions to single touch payroll at the same time.

If you need some help, you know where we are!