The ATO reminds employers to ensure their payroll systems correctly calculate new super guarantee (SG) entitlements from 1 July.
As of 1 July 2022, the $450-per-month SG eligibility threshold was removed. This means employers must pay them SG, regardless of how much they earn. However, employees under 18 must still work more than 30 hours in a week to be eligible.
It is important to make sure payroll and accounting systems have been updated for salary and wages paid from 1 July 2022. This will ensure employers correctly calculate their employee’s SG entitlement.
The ATO also reminds an employee’s eligibility for SG is determined when they are paid, not when they earn the income. This means if employers pay an eligible employee on or after 1 July 2022, they need to pay their super regardless of how much they have earned – even if all or part of the relevant pay period is before 1 July.