Paying contributions 

As an employer, you are required by law to make contributions to superannuation on behalf of your employees. When you become a participating HIP employer, you agree to submit contributions within 14 days of the end of the month for employees who are HIP members.

This includes member salary sacrifice (before-tax) contributions and contributions made from after-tax salary.Contribution returns can be submitted:

• Electronically via an online form pre-populated with your employees' details
• Electronically via a payroll or excel spreadsheet file
• On paper

Employer contributions

The Superannuation Guarantee (Administration) Act 1992 (the Act) requires employers to make Superannuation Guarantee (SG)contributions on (at least) a quarterly basis or you will incur the SG charge.  The Act requires contributions to be made by the 28th business day following the end of each calendar quarter (that is, by 28 July, 28 October, 28 January and 28 April).

 

Failure to meet these deadlines means you have to pay the required amount, plus a penalty imposed by the Australian Tax Office (ATO) the following month.

Being aware of the deadlines helps avoid penalties and, importantly - since a contribution does not begin to earn interest until it is paid into a member's account - maximises your employees' retirement savings.

Employers joining HIP are required to make payments monthly, unless other arrangements have been agree to, so they never have to worry about missing the SG deadline.

Phone the ATO on 13 10 20 if you require further help understanding SG legislation.

Member contributions

The Superannuation Industry (Supervision) Act 1993, requires an employer to send an employee's voluntary contributions (from their after-tax salary) to the employee's superannuation fund, within 28 days of the end of the month in which the amount was deducted from the employee's pay.

Paying contributions when membership information is incomplete

If you are a participating HIP employer you do not have to wait until an employee or group of employees has completed and signed a Membership Application form before you can send contributions to HIP.

We can accept employer contributions for an employee or group of employees without having received individual Membership Application forms, if you can provide each employee's:

• Full name
• Date of birth
• Residential address
• Tax File Number

You should provide this information for each employee with the first Contribution Advice, and send it to us after the employee becomes entitled to an employer superannuation contribution.

If we don't receive this information we can't open an individual account and will return to you any contributions you have sent for these employees.


Important note: Unless you hold an Australian Financial Services License (AFSL), or are an authorised representative of an organisation that holds an AFSL, you cannot recommend any financial products or give advice about any superannuation funds.

Breaches of the relevant legislation could expose employers to hefty fines and/or imprisonment.

Any person wanting advice about financial products should seek advice from an Australian Financial Services licensee or an authorised representative of a Licensee.