The ATO is reminding employers that the holiday season is fast approaching, and that their holiday casuals may now be eligible for super.
From 1 July 2022, employers need to pay super for employees at a rate of 10.5%, regardless of how much they are paid, because the $450-per-month threshold for super guarantee (‘SG’) eligibility has been removed.
This change doesn’t affect other eligibility requirements for SG. In particular, workers who are under 18 still need to work more than 30 hours in a week to be eligible.
For example, Anish is a 17-year-old employee working a job at a hotel over the holiday season. Anish works 32 hours in a week at the hotel and earns $800 before tax. He also works 5 hours at his local café, earning $150.
As Anish worked more than 30 hours in one week at the hotel, his employer will need to pay him super on the $800 earned. However, as Anish works less than 30 hours a week at the café and is under 18, he is not entitled to super from this employer.
The ATO recommends that employers check their payroll and accounting systems are up to date so they are correctly calculating their employees’ SG payments, and that registered tax agents and BAS agents can help with their tax and other obligations.
If you need any support to make sure you comply with your ATO obligations call my office on 3399 8844 and we will give you a FREE Financial Health Check. You can also visit our website at www.straighttalkat.com.au and complete your details on our Home page to request an appointment.
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.