Super for company directors and office holders¶

A common myth is that once someone becomes a company director, the usual pay rules no longer apply to them. That is not the case for super. A director who is paid for the work they do for the company can be entitled to super guarantee in the same way as any other employee.

An office holder is a person who holds a formal position in an organisation, such as a company director or company secretary. The same idea applies to them.

In one line

A director or office holder who is paid for their duties can be entitled to super, just like an employee. Being a director does not remove the super obligation.

Why this matters¶

Many small companies are run by their owners, who are also the directors. It is easy to assume that a director who takes money out of their own company does not need super paid on it. That assumption can leave a real gap. If super should have been paid and was not, the company can end up owing it later, along with extra charges. Getting it right from the start avoids that.

What you will learn¶

When a company director or office holder is entitled to super
Why being a director does not remove the super obligation
How to tell a working director's pay apart from directors' fees

Understanding the concept¶

The super guarantee is the minimum super an employer must pay for its eligible workers. For super purposes, the rules treat company directors as covered. The ATO explains that super guarantee applies to company directors who are paid for their work, the same way it applies to other employees.

So the key question is not "are they a director?" but "are they being paid to do work for the company?" If a director draws a salary or wage for the duties they perform — for example, an executive director who runs the day-to-day business — that pay can attract super, just like any other employee's pay.

Being appointed as a director does not, on its own, switch the super obligation off. The obligation follows the work and the pay, not the job title.

For accountants & bookkeepers

The ATO's guidance treats a company director who is paid for their duties as an employee for super guarantee purposes. Super is worked out on the director's ordinary time earnings at the current super guarantee rate, the same as for an arm's-length employee. Directors' fees paid for performing the duties of the office are themselves ordinary time earnings, so they attract super too — the label on the payment does not put it outside super on its own.

Example¶

Nina runs a small family cafe that operates through a company. Nina is the sole director and also works in the cafe every day — managing staff, ordering stock, and serving customers. The company pays Nina a regular salary for that work.

Because Nina is paid for the work she does for the company, her salary is treated the same as an employee's pay for super. The company works out her super on her ordinary time earnings at the current rate and pays it to her fund by the due date. The fact that Nina is the director does not change that.

Common mistakes¶

Assuming a director never needs super paid on their pay — a paid working director can be entitled to super.
Thinking the job title "director" removes the obligation — it does not; the pay for work is what matters.
Treating every payment to a director the same without checking whether it is salary for work or a different kind of payment.

How this works in myaccountant¶

In the app — you set up a working director as an employee, just like any other staff member. When you run a pay run, myaccountant works out their super on their earnings, records it, and helps you pay it to their fund by the due date. Everything is kept in one place so you have a record of what was paid and when.

Key points¶

A director or office holder paid for their work can be entitled to super.
Being a director does not remove the super obligation.
The obligation follows the pay for work, not the job title.
A working director's salary is treated like an employee's pay for super.
If in doubt about a specific payment, check the ATO's current position.

Learn next¶

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

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