SUBJECT – Superannuation Guarantee Contributions
Hi I'm Barbara Keating, Accountant and small business specialist at MWL Financial Group.
Superannuation Guarantee Contributions or SGC are legislated amounts employers are required to pay to an employees superannuation fund as part of their employment.
At the time of shooting this video the contributions were required at a rate of 9.5% of normal gross wages and required where an employer paid more than $450 in any given month to an employee. Over time SGC is legislated to increase to 15%. For high income earners there are limits to the amounts required.
SGC applies to the salaries of directors and when contemplating wage levels business people should also consider the SGC liability especially if the wage is declared after year end as SGC is payable 28 days after the end of the month in which the wage was declared. Failure to pay SGC on time will negate the ability to claim the payment as a tax deduction.
The other area some business people often fail to pay SGC is in relation to sole trading contractors offering personal services in their contract income.
For more information contact us at firstname.lastname@example.org and either me, Barbara Keating or one of our experts will be more than happy to help.