Employers can make extra contributions on behalf of their staff.
They can do this by a payroll deduction or as a salary sacrifice payment.
Payroll deductions (after-tax contributions)
Employees can make after-tax contributions via:
- Payroll deduction
- Direct payment to the fund
If your employee is making contributions by payroll deductions, Government laws require employers to pay any voluntary contributions to their super fund within 28 days after the month in which the deduction was made.
There are significant penalties for not meeting this deadline. When making the payment on behalf of your employee, you must flag this payment as a voluntary after-tax payment. This is easily done online by adding the amount to the appropriate column in your account or on your payroll upload file.
Before-tax or salary sacrifice contributions
With agreement from their employer, AustralianSuper members can make contributions to their AustralianSuper account from their before-tax pay, known as salary sacrifice payments. The member chooses to sacrifice some of their before-tax salary in return for increased super contributions.
Any salary sacrifice amounts contributed should be shown separately on your electronic or payroll file and included in the total payment for the month or quarter.
Salary sacrifice may be subject to the terms specified in awards or employment agreements. It’s usual practice amongst employers that all other employee entitlements that would have been based on before-salary sacrifice earnings (eg long service leave, annual leave, penalty rates, termination payments, allowances, SG contributions) continue to be calculated and paid as if no salary sacrifice was made.
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