When it comes to making super guarantee contributions for your workers, it is important to understand who is considered an “employee” for these purposes. The rules for determining this may differ from the rules for PAYG withholding purposes. In general, you are required to pay super for any employee who is working for your business on a full-time, part-time, or casual basis, regardless of the amount they are paid. This includes working holidaymakers and company directors.
There was a recent change to the super guarantee rules that took effect on July 1st, 2022, which requires you to pay super for employees who are paid less than $450 in a month. This means that even if someone is paid a lower amount, they may still be considered an “employee” for super guarantee purposes and you would still be responsible for making contributions on their behalf.
If you are uncertain about whether someone working for your business is considered an “employee” for super guarantee purposes, it may be a good idea to consult with your tax advisor. We can help you understand the rules and ensure that you are meeting your obligations in terms of making super guarantee contributions. This can help you avoid potential penalties and charges for failure to meet your obligations, and ensure that your workers receive the superannuation and other entitlements that they are entitled to.
