Which workers you must pay super for¶

Not sure whether you owe super for someone you pay? For most employees the answer is yes. You generally pay super for your employees whether they are full-time, part-time or casual, and no matter how much they earn.

There are a couple of things to watch. Workers under 18 have a special rule, and some contractors count as employees for super even though they run their own business. This lesson walks through each of these.

In one line

You generally pay super for employees — full-time, part-time or casual — no matter how much they earn, with a special rule for workers under 18.

Why this matters¶

If you miss someone who was eligible, you end up owing super you did not pay — and that can grow into a bigger problem over time. Knowing who counts up front means you set up each new worker correctly and pay the right people from the very first pay.

What you will learn¶

Which employees you must pay super for
The special rule for workers under 18
That some contractors count too

Understanding the concept¶

The Australian Taxation Office (ATO) explains that, generally, all employees are eligible for super. It does not matter whether the person is full-time, part-time or casual — they are still eligible.

It also does not matter how much they earn. There used to be a rule that an employee had to earn at least $450 in a month before super applied. The ATO removed that $450 threshold from 1 July 2022. So you now generally pay super for eligible employees no matter how little they earn.

There is one main exception. A worker under 18 is only eligible for super if they work more than 30 hours in a week. If an under-18 worker does more than 30 hours in a week, you pay their super regardless of how much they earn that week. If they work 30 hours or fewer in a week, super does not apply for that week.

Some contractors also count. Even though a contractor runs their own business, the super rules can treat certain contractors as employees for super purposes — usually where the contract is mainly for their labour. This has its own lesson, so it is only mentioned here.

For accountants & bookkeepers

The under-18 test is applied per week — more than 30 hours in that week — not per pay period or per month. Domestic or private work has a similar more-than-30-hours test. The contractor rule turns on contracts that are wholly or principally for the person's labour; the detail sits in the "super for contractors" lesson. Fund choice and stapled or default funds are handled during onboarding and are covered in the Employees module.

Example¶

A business has three workers. A full-time salaried worker and a casual who picks up a few shifts are both eligible for super, no matter how much each earns. A 17-year-old who works after school does 12 hours one week and 34 hours in the school holidays. In the 12-hour week they are not eligible, because that is 30 hours or fewer. In the 34-hour week they are eligible, because they worked more than 30 hours that week.

Common mistakes¶

Skipping super for low earners — the $450 threshold was removed from 01/07/2022.
Skipping super for casuals — casuals are generally eligible like anyone else.
Applying the under-18 rule by month instead of by week — the test is more than 30 hours in a week.
Assuming a contractor never gets super — some contractors count as employees for super.

How this works in myaccountant¶

In the app — when you add an employee and run a pay run, myaccountant works out the super for each eligible employee on their ordinary time earnings and shows the super amount per person. You can review each employee's super in the pay run before you finalise it.

Key points¶

You generally pay super for employees — full-time, part-time or casual.
You pay super regardless of how much the employee earns.
The $450 monthly threshold was removed from 01/07/2022.
Under-18 workers are eligible only if they work more than 30 hours in a week.
Some contractors count as employees for super — see the contractor lesson.

Learn next¶

General information only — not tax, super or financial advice.

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