Talking About Super with My Employees
As a business owner, you have a lot going on – you are not only running a business but thinking about your own future as you get closer to retirement. But it is also important to think about your employee’s future. You play a very important role in helping your employees prepare for their future by paying super.
Being involved in encouraging your employees to be active participants in their super and preparing for their future helps to build your relationship with your employees and helps them to understand how super works.
Here are some useful super topics to talk to your employees about:
- How often you pay super. Most employers pay their super quarterly. You must pay payments at least quarterly, by the due dates set by the Australian Tax Office (ATO).
- How much super you pay each pay period. The minimum amount that you must pay is 9.5 percent of their wages (or ordinary time earnings).
- Whether they are able to choose their own super fund or not. Let your employees know if they can choose their own super fund. If they can, you should provide them with a standard choice form.
- If they are not able to choose (or they don’t make a choice), let them know which super fund their super is paid into. It is important that your employees understand where their money is and how it is getting invested.
Before you start this conversation, make sure that your records are clear and up-to-date. If you’re a small business owner, increasing your knowledge about superannuation for a small business owner will make the whole conversation go much more smoothly.
If you are having trouble talking to your employees about their super, contact us today. Not only can we help you pay super correctly, we can help with your records and the difficult conversations.