Are you aware that some industry awards require employers to pay superannuation at a lower monthly ordinary time earnings (OTE) threshold than what is required under the Superannuation Guarantee laws?
When the Government requested a review of all Awards in 2009, 122 Modern awards were created and then commenced on 1 January 2010. Due to this review the following modern award Superannuation thresholds were decreased from $450 gross of OTE to $350 gross of OTE.
Restaurant Industry Award 2010
(Section 30.2 – – Employer contributions (b) The employer must make contributions for each employee for such month where the employee earns $350.00 or more in a calendar month.)
Hospitality Industry (General) Award 2010
(Section 28.2 – Employer contributions (b) The employer must make contributions for each employee for such month where the employee earns $350.00 or more in a calendar month.)
This differs from the minimum earnings required under the Superannuation Guarantee Act, which only requires super to be paid after $450 gross or more is earned per calendar month.
For Employers under the Fast Food Industry Award 2010 the usual threshold of $450 gross per calendar month applies.
Also, if your employees are aged below 18 and not working more than 30 hours a week you are not required to make any superannuation contributions, regardless of whether they earn more than $350 or $450 a month.
If you are classified within these Industries or would just like help with updating your Payroll software with these limits please contact our office and any one of our friendly team will be able to assist with this matter.