If you are an employer who makes additional or extra super contributions, you are required to report them through Single Touch Payroll (STP) or on the employee’s annual payment summary.
However, there are two kinds of super contributions that can be made – reportable and non-reportable. As an employer, it’s important to know the difference between the two as they could affect your and your employees’ returns.
Reportable employer super contributions (RESC) are contributions that are not included in your employee’s assessable income. They do not affect the way that your super contributions for your employees are calculated.
The following are types of employer super contribution that are reportable:
Extra contributions must be reported by employers if:
The extra contributions are reportable super contributions unless you show that:
The following employer super contributions are not reportable, however, and should not be included on the employee’s assessable income:
In order to ensure that you are remaining compliant with super contributions for your employees, you must keep accurate records. This will show whether your employee influenced the super contributions you made on their behalf.
This may include records of:
These records must be kept for 5 years after they are prepared, obtained or the transactions are completed, whichever occurs last.
Reportable employer super contributions are not included in your employees’ assessable income. Ensure that you are doing the right thing by your employees when it comes to their super by having a conversation with us, to be sure that you are acting in compliance with what is needed.