Small business stuffing up super

Small business stuffing up super1

Recent research by the ATO found that up to 20% of Australian businesses aren’t paying their employees’ super correctly.

With the rise of start-ups and small businesses across Australia, many company employee numbers are growing. Without the HR staff, systems and knowledge to hire and pay staff correctly, many employees are sadly missing out. In fact, recent research by the ATO found that up to 20% of Australian businesses aren’t paying superannuation or super correctly.

As an HR Specialist for SME’s, I know that though there are cost-effective HR support options available to businesses, many companies don’t know where to start.

Small businesses are often overwhelmed with the responsibilities of running a business. They are great at what they do, but don’t have the time or knowledge to pay or manage their staff properly.

Recently, we have had an increase of businesses reach out to us to check their contracts and processes. Through these quick assessments, we found almost half aren’t paying superannuation to their casuals, or in some cases paying below minimum wage.

All employees, be that full time, part time or casuals are entitled to the minimum 9.5% superannuation. Sometimes, more if they are part of a union or enterprise bargaining agreement.

It’s not that employers are trying to cut costs, they just simply don’t know the basics, or how quick, easy and cheap it can be to outsource these activities.

Failure to pay the correct superannuation and wages can mean hefty fines, and are a major headache for small businesses.

To make sure you’re on the right track, do these three steps:

  • Get a free assessment of your small business from a professional. There may be simple improvements you can make for your business, and it doesn’t cost as much as you’d think
  • Have an HR expert review your current employment contracts, employee pay, superannuation and conditions
  • Check the Fairwork website for minimum wages for your employees and information on National Employment Standards surrounding superannuation, hours of work, conditions and different employment arrangements to suit your business.

Dayna Edwards, Managing Director, Get Hired