Managing employees' contributions

Payroll deduction must be set up in your payroll system with the correct amounts to be deducted from each pay. They also need to be set up in a manner that allows you to identify the correct type of contribution for each Division, for example, if it is a:

Division A & E	Division B & D
concessional (pre-tax or salary sacrifice) non-concessional (post-tax) superannuation guarantee (SG) spouse award	concessional (pre-tax or salary sacrifice - defined) non-concessional (post-tax defined) top-up (concessional or non-concessional) EFB (defined) BB (defined) award

Correctly advising the type of contribution is imperative to enable the Scheme to correctly allocate it to the member's account, to ensure that the correct level of tax is deducted, where applicable, and to allow accurate reporting to the ATO.

What must I do once payroll deductions have been set up?

1. deduct the contribution from each pay
2. ensure the amount/s is placed in the correct column/s of the Contribution Return Spreadsheet (Div A, Div B, Div D & Div E) or equivalent payroll report (must include all required information) NB: a separate spreadsheet is required for each division.
3. reconcile amounts due for Div B - it is the responsibility of the employer to reconcile
4. remit contributions deducted for Div D and to reconcile the billing for employer contribution components.
5. remit contributions for each division by the 28th day of the month following the month deducted, or can be remitted each pay run

Contribution caps apply on the amount that can be paid into a member's account. It is the employee's responsibility, not the employers, to manage the amounts of their contributions in relation to the caps. There are also age restrictions relating to contributions. Refer to the Employer Handbook for more information.