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Re: Superannuation Guarantee threshhold

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Initiate

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Hi

I just used superannuation guarantee tool from ATO portal and one of the questions is:

 

'Is the worker paid $450 or more (before tax) for any calendar month in the relevant quarter?'

 

The word quarter seems to be confusing and my question is if an employee receives less than $450 for two month and over $450 for one month in the relevant quarter, the employee is just entitled for that 1 month  he/she received more than $450? or since one month was over $450 the SG guarantee applies to the other months in that quarter?

 

Regards,

Hedayat

 

 

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Devotee Registered Tax Practitioner

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or since one month was over $450 the SG guarantee applies to the other months in that quarter?

 

No, the test is every month  -  so if wages were less than $ 450 for 2 months, then you only pay super for the month that wages = $ 450 or more.

 

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Best answer

Devotee Registered Tax Practitioner

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or since one month was over $450 the SG guarantee applies to the other months in that quarter?

 

No, the test is every month  -  so if wages were less than $ 450 for 2 months, then you only pay super for the month that wages = $ 450 or more.

 

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ATO Certified

Community Support

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Hi @Hedayat

 

Thanks for your post.

 

@Bruce4Tax is correct. While SG only has to be calculated and paid on a quarterly basis, your employee's eligibility is measured on a monthly basis. In fact, some employees (e.g. less than 18) are measured on a weekly basis. In turn, you only pay your quarterly SG for the month (or week) that your employee is eligible.

 

For example, if an employee (aged 18 or more) is paid $400 in January, $400 in February and $500 in March, you will only have to calculate and pay SG on the $500 paid in March. It is due by 28 April (or next working day).

 

For more information about working out if you have to pay super, check out our website.

 

Hope this helps.

 

Thanks, ChrisR