Setting Up Your Employees on Virgin Money Super
Meeting your super responsibilities as an employer doesn’t have to be complicated. If you can take some time to understand and set things up properly now, everything will be much easier later.
Here are a few things to know about setting up your employees’ super and making contributions.
Who's eligible for contributions
By law, you have to take care of your employees by paying super contributions on their behalf.
- are usually referred to as Superannuation Guarantee (SG) Contributions
- are typically 9.5% of your employee’s salary or ‘ordinary times earnings’ (ordinary hours of work)
- could include award payments, bonuses, commission and allowances
Here are some checklists to help you determine when you need to pay SG contributions.
- Do you employ a person on a full-time, part-time or casual basis?
- Are they over 18?
- Are they paid $450 (before tax) or more in a calendar month?
If you said yes to all, then you need to make a SG contribution. There may be other situations where you are obliged to make super contributions and you should always check your obligations with the ATO (for example, if your employee is under 18 but working more than 30 hours per week, you may be obliged to pay contributions on their behalf).
- Are you hiring the contractors primarily for their labour?
- Are they carrying out the work themselves (ie. not free to engage others)?
If you said yes to all, then you may have to pay their superannuation contributions, even if they quote an Australian Business Number (ABN).
Contributions if you're self-employed
Self-employed people can choose whether or not they would like to pay themselves superannuation. If you’re self-employed, you may want to think about super as a way of saving for your future. In most cases, self-employed people can claim a full tax deduction on contributions made up to age 75.
See the Australian Taxation Office (ATO) website for information on claiming deductions for personal super contributions.
Super may not be at the top of your priority list if you're self-employed but it pays to give it some thought. Putting super money away now could make all the difference to your retirement future.
You can make all your employees’ superannuation payments in one go using a SuperStream compliant payment system either through QuickSuper or your preferred payment system.
Setting them up is easy.
Check their fund of choice
Ask each of your employees if they would like to select Virgin Money Super as their default superannuation fund. If not, simply get your employees preferred/chosen super fund details to input into your SuperStream system.
Give them a standard Super Choice Form
Provide all new employees with a Super Choice form. It’s important you provide them with the option to choose their fund within 28 days of commencing employment, with you.
You can start paying superannuation contributions to your default fund if:
- an employee does not choose a fund within 28 days; or
- they haven’t provided all the information you need for their fund of choice.
It’s a good idea to keep records of who they’ve given choice of fund forms to, as well as records of all superannuation transactions, for at least 5 years.
Using QuickSuper or your SuperStream compliant system of choice, simply enter your employees details into the system when you make your regular employee super payment. The system allows you to make payments to multiple funds at the same time. Simple.
It is important your employees get to choose the superannuation fund where their Superannuation Guarantee Contributions are paid. And we hope they choose Virgin Money Super.
If you have a new employee who doesn’t make any choice at the time of starting, you can start making contributions into your business’s nominated default fund – Virgin Money Super.
In selecting your default fund, it's important for you to know that from 1 January 2014, all default funds need to be MySuper compliant to ensure that if your employee does not choose a fund their money will be invested in low-cost and simple super product allowing them to compare funds easily based on cost, investment performance and insurance in the future.
At Virgin Money Super, our MySuper compliant offering is called the Lifestage Tracker®, which makes investments automatically based on an employee’s age. We also have options for people who want to take more control of their investments as well as a range of insurance options. It’s all about making super easy and simple for your employees.
The information above is intended as a guide only. If you are unsure about who you need to make contributions for we suggest you contact the ATO.
As an employer, it's important you fully understand your superannuation obligations as failure to meet these minimum requirements could mean financial penalties from the Government.
QuickSuper is a registered trademark and a product owned and operated by Westpac Banking Corporation ABN 33 007 457 141. Westpac’s terms and conditions applicable to the QuickSuper service are available after your eligibility for the free clearing house service is assessed by Virgin Money Super.
This information is of a general nature only and does not take into account your personal financial situation, needs or objectives. As we don't know your financial needs we can’t advise if Virgin Money Super will suit you. Please consider the Product Disclosure Statement, Product Guide, Insurance Guide and Financial Services Guide before making a decision about the product. For further information about the insurance options refer to the Insurance Guide.
While there are no contribution, withdrawal or switching fees, a buy/sell spread applies at a fund level when purchasing and selling units. Other fees and costs may apply such as insurance fees. These are retained by the fund and are not paid to Virgin Money or the Trustee. All fees are inclusive of Goods and Services Tax (GST) and net of Reduced Input Tax Credits (RITC).
Before you rollover or consolidate your superannuation, you should check to see if insurance or other benefits will be impacted or lost. Some funds may also charge withdrawal or exit fees.
It is very important to note that superannuation is generally a long term investment. Past investment performance is not a reliable indicator of future performance and should never be the sole factor considered when selecting a fund. It is very important to note that superannuation is a generally long term investment and that past performance is not indicative of future performance.
Prepared by Virgin Money Financial Services Pty Ltd ABN 51 113 285 395 AFSL 286869. Virgin Money Super is a plan in the Mercer Super Trust ABN 19 905 422 981. Virgin Money Super is issued by Mercer Superannuation (Australia) Limited (MSAL) ABN 79 004 717 533 AFSL 235906 as trustee of the Mercer Super Trust. For more information about Virgin Money Super, please refer to the PDS which is available free of charge on our website or by calling the Customer Care team on 1300 652 770.
SuperRatings award reflects a funds' value for money, and is awarded based on a rating system of investment, fees and service. SuperRatings does not issue, sell, guarantee or underwrite this product. Go to www.superratings.com.au for details of its ratings criteria.
The amount shown is an estimate only of the Indirect Cost Ratio (ICR) generally expected to apply to these investments for 2016-2017 Financial Year.
Virgin Money Super’s fund returns shown above are net earnings and are calculated after the deduction of applicable taxes and costs. The results are current as at 30 June 2016. These results are provided by Virgin Money Super Asset consultants. It is very important to note that past performance is not indicative of future performance.
The median results are provided by SuperRatings and are current as at 30 June 2016 as a benchmark only. Virgin Money Super has not verified its accuracy so we can’t guarantee that it is correct, and accept no liability for inaccuracies, errors or omissions.
Eligibility crtieria and fees apply. Aged 15-64 Death and Total and Permanent Disablity cover. Automatic Insurance cover is subject to Exclusions including Pre-Existing Medical Condition exclusion. This means that, you won’t be covered for any illness, injury, condition or related symptom that you were aware of or should have been aware of, or had a medical consultation for, were planning to have a medical consultation for, or should have had a medical consultation for in the two years prior to cover commencement. See the Virgin Money Super Insurance Guide for more information.
Automatic Death & TPD cover for Australian residents aged 15-64 with our default insurance offering. Conditions and Exclusions (such as pre-existing medical conditions) apply. See the Virgin Money Super Insurance Guide for more information.
The case studies shown are hypothetical and are not meant to illustrate the circumstances of any particular individual. All claims will be assessed in accordance with the policy terms. In the event of any inconsistency with other material, the insurance policy terms will prevail.
For further information regarding Virgin Money Super’s insurance cover, including terms, conditions and eligibility, please refer to the Insurance Guide which forms part of the Product Disclosure Statement (PDS). The PDS is also available free of charge by contacting Customer Services on 1300 652 770.
This information is of a general nature and has been prepared without taking account of your personal needs, financial circumstances or objectives. Before acting on this information, you should consider the appropriateness of the information, having regard to your needs, financial circumstances and objectives. You should read the relevant Product Disclosure Statement available by calling 1300 652 770 and consider if this product is right for you before making a decision to acquire or continue to hold the product.