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Super...who pays it?

Super...who pays it?

Old Mar 25th 2009, 9:41 am
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Default Super...who pays it?

Folks, who is it that pays your Super contributions? I was under the impression that it is the employer...but a thread further down seems to suggest that it is paid from your wages. So is it taken from your pay packet, or is it effectively paid in addition to your wages?
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Old Mar 25th 2009, 9:57 am
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Default Re: Super...who pays it?

It is the employer who pays it.

They must by law, pay 9% of your normal salary into an approved Super scheme.

Edit to clarify:

The 9% is on top of your normal salary. They are not allowed to deduct it from your salary, and would incur penalties if they do.

Superannuation guarantee

The minimum amount of superannuation that an employer has to pay for their employee. This amount is set out in the superannuation guarantee legislation. It is currently 9% of the employee’s earning base.

Last edited by ABCDiamond; Mar 25th 2009 at 10:02 am. Reason: to clarify
 
Old Mar 25th 2009, 10:42 am
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Default Re: Super...who pays it?

Originally Posted by SmogMonster
Folks, who is it that pays your Super contributions? I was under the impression that it is the employer...but a thread further down seems to suggest that it is paid from your wages. So is it taken from your pay packet, or is it effectively paid in addition to your wages?
In my experience it depends on how the job is advertised. I have seen some jobs advertised as salary plus super, others as a total amount (inclusive of super)

I have just received a job offer that is inclusive of super payments. My current job is a contract and was laid out as an hourly rate plus super at 9%.

EDIT: I have learnt to clarify the situation before accepting an offer.
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Old Mar 25th 2009, 11:34 am
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Default Re: Super...who pays it?

Originally Posted by MarkMC
In my experience it depends on how the job is advertised. I have seen some jobs advertised as salary plus super, others as a total amount (inclusive of super)

I have just received a job offer that is inclusive of super payments. My current job is a contract and was laid out as an hourly rate plus super at 9%.

EDIT: I have learnt to clarify the situation before accepting an offer.
Agreed - a lot of contracting jobs specify a total rate per hour BEFORE super is deducted. Whatever you bill in hours over a period, 9% is deducted and transferred to your nominated super provider.

It's basically a question of is the job salary PLUS super or is it super-inclusive.
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Old Mar 25th 2009, 11:35 am
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Default Re: Super...who pays it?

Many people choose to pay additional sums into their super from their wages as well but they are before tax payments so you do get a tax benefit from doing that. I am so glad that I paid into my super over and above the standard rate because otherwise my super would have been peanuts.
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Old Mar 26th 2009, 4:42 am
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Default Re: Super...who pays it?

It is always the employer who pays it.

It can be confusing as some jobs ads include it (often call it the total package - makes the salary look more) and some don't. But just because it is included in the job ad does not mean you are paying it. It just means your salary is actually lower than the ad states and then the super is paid on top of that by the employer to being it up to the advertised amount.

Always ask whether the advertised salary is inclusive or exclusive of super.
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Old Mar 26th 2009, 4:51 am
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Default Re: Super...who pays it?

My employer pays 21% and I pay 3%.
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Old Mar 26th 2009, 4:53 am
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Default Re: Super...who pays it?

Originally Posted by renth
My employer pays 21% and I pay 3%.
now you are just showing off.
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Old Mar 26th 2009, 5:00 am
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Default Re: Super...who pays it?

Originally Posted by MarkMC
now you are just showing off.
Salary is very ordinary but all the "extras" are great.
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Old Mar 26th 2009, 8:25 pm
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Default Re: Super...who pays it?

How would it work if I was contracting to a UK company and putting an invoice in Monthly? Is th UK company exempt from the Super? Or do I take it into acoount with my day rate and pay it out of that?
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Old Mar 26th 2009, 10:00 pm
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Default Re: Super...who pays it?

Originally Posted by saxtonj
How would it work if I was contracting to a UK company and putting an invoice in Monthly? Is th UK company exempt from the Super? Or do I take it into acoount with my day rate and pay it out of that?
If you are contracting, and invoicing your work, then you are self employed and the company is not an employer, and therefore does not pay any super.

You have to make your own super arrangements.

If you were working for (employed by) a UK company, they would be paying UK NHI contributions, and not get involved in the Australian payroll system.
 
Old Mar 26th 2009, 10:04 pm
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Default Re: Super...who pays it?

ABCDiamond - as your name implies - you're a diamond.

Seems obvious if you think about it but until someone sits you down and tells you, you're never really sure are you.

Thanks
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Old Mar 27th 2009, 5:09 am
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Default Re: Super...who pays it?

Originally Posted by saxtonj
ABCDiamond - as your name implies - you're a diamond.

Seems obvious if you think about it but until someone sits you down and tells you, you're never really sure are you.

Thanks
I'll be working for the Tassie health board. My basic salary is about $60k, so i assume that the 9% Super is ontop of that figure?
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Old Mar 27th 2009, 7:09 am
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Default Re: Super...who pays it?

Originally Posted by ABCDiamond
It is the employer who pays it.

They must by law, pay 9% of your normal salary into an approved Super scheme.
Super is also payable on all overtime and shift allowances.
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Old Mar 27th 2009, 8:35 am
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Default Re: Super...who pays it?

Originally Posted by ex_exile
Super is also payable on all overtime and shift allowances.
Not exactly...

From 1 July 2008, you must use ordinary time earnings, as defined in the super guarantee law, to calculate the minimum super guarantee contributions for your employees. This ensures all eligible employees are treated the same for super guarantee purposes.
    However, a new ruling is being worked on, which will come out soon, and may change some things, possibly including:
    Relationship between 'ordinary time earnings' and 'salary or wages'

    7. Payments that are included in OTE are also included in 'salary or wages'. 'Salary or wages' as defined in the SGAA is a broader concept than OTE and includes payments that do not otherwise constitute OTE.

    8. Payments which are not 'salary or wages' because they do not constitute remuneration paid to employees for their services as employees are not considered OTE.
     

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