Is your business paying too much super?

Is it time your business had a health check? Time and time again I see many businesses paying too much super or even worse receive an unwanted lump sum super bill from the ATO for their ‘workers’.

The rules relating to the calculation of super for workers are quite complex. For instance, a common mistake many businesses make who employ individual contractors assume these payments for contracts do not attract super. The determination of super in this example is dependent on a number of facts regarding the contractor and their relationship with the business.

Super is a constantly evolving area and businesses need to ensure their accounting and payroll solutions are adaptable and up to date for these changes. From 1 July 2013, the superannuation guarantee rate will increase from 9% to 9.25%. The minimum rate will continue to rise progressively each year up until 1 July 2019 where the minimum rate will be 12%.

Business owners need to understand their position and implement strategies to minimise potential costs later down the track. Business owners need to ensure they’re getting the right advice in a timely manner and ensure they are using the right business solutions to support their business.

For further information or proactive advice to help your business, contact Matt on 0478 672 714 or email matt@hdbusinessconsultants.com.au.