The Superannuation Guarantee (SG) rate increases from 9.5% to 10% from 1 July 2021. This rate increase applies to all salary & wage payments made on or after 1 July 2021 (even if part of the payment relates to work performed before 1 July 2021). If you have employees, please review your payroll software to ensure you are meeting your obligations and paying Superannuation Guarantee at the new minimum rate.
What do you need to do?
- If HHH Partners process your payroll, we will ensure you are meeting your requirements. If HHH Partners don’t handle your payroll, you should check with your payroll software provider to make sure they are on top of this rate change.
- Review any individual agreements or employment contracts and any references to Superannuation Guarantee contributions, to determine if any updates are required. Noting if your employment arrangements provide for a total remuneration package including Superannuation Guarantee contributions, then the increase will be absorbed in your employees package rate, but will reduce their take-home pay.
- Notify your employees as they may need to review their Salary Sacrifice or after-tax contributions arrangements.
Please find below further information on applying the Superannuation Guarantee rate increase for specific payroll software options. If your software provider is not mentioned below, please contact their support avenue directly for further details.
MYOB software requires a manual adjustment to the superannuation guarantee rate.
- MYOB AccountRight, please click here for instructions
- MYOB Essentials, the changes are required for each employee. Please click here for instruction
Reckon software will need to be updated to the 2021 version for Reckon Hosted. For Reckon Accounts Desktop you will need be in the 2021 version and have the latest tax tables installed.
- Reckon Hosted, please see the instructions by clicking here
- Reckon Accounts Desktop, please follow the instructions here for downloading and installing the latest tax tables
If you are using the standard statutory rate method for your employees, then Xero will automatically update the Super Guarantee rate to 10%. This will be the normal default setup for employees
- If you are unsure if this is your current setup for your employees, or if don’t use the statutory rate, Xero provides more information here:
If you process your wages through Phoenix payroll the rate will automatically update to 10% unless you have changed the default setup.
- For steps on checking your superannuation rates are setup to automatically update, and information if you pay above the 9.5% guarantee already, please click here:
If you require any assistance or are unsure how these changes may affect your business please don’t hesitate to contact our office and we will be happy to guide you through the process.