When it comes to managing employee benefits, understanding reportable employer super contributions is essential.
These contributions impact your reporting obligations and your employees’ tax situations.
What Are Reportable Employer Super Contributions?
Reportable employer super contributions refer to additional contributions made for an employee beyond the compulsory super guarantee. These contributions need to be disclosed, as they may affect an employee’s taxable income and eligibility for certain benefits.
Types of Contributions Explained
1. Matched Contributions
- Reportable: Contributions agreed upon through individual contracts where the employee influences the terms.
- Not Reportable: Contributions negotiated under collective industrial agreements, even if employee choice triggers them.
2. Defined Benefit Fund Contributions
- Not Reportable: Employer contributions determined by the fund’s actuary for employees with defined benefit interests.
- Reportable: Extra contributions requested by employees from their pre-tax income or contributions to an accumulation account within the fund.
3. After-Tax Income Contributions
- Super contributions made by employees from their after-tax income are considered personal contributions and are not reportable. Even if employers deduct and forward these amounts, they remain outside the reportable category.
Reporting Obligations for Employers
Using Single Touch Payroll (STP)
- Report extra super contributions online through STP to simplify reporting and finalization.
- Salary-sacrificed amounts tied to ordinary time earnings (OTE) or wages must also be reported via STP.
Issuing Payment Summaries
- Include reportable contributions on employees’ annual payment summaries under “Reportable Employer Superannuation Contributions.”
- Report contributions for the income year they relate to, even if the super fund receives them in a different year.
Key Exclusions
- Super guarantee amounts or other compulsory contributions should not be included in payment summaries.
Why It Matters
Reporting accurately ensures compliance with ATO requirements and helps employees understand their super contributions’ tax implications. As your accountant, we’re here to guide you through these obligations and ensure your records are in order.
Feel free to reach out if you have questions or need assistance with reporting. Let’s make managing your super obligations straightforward and stress-free!
