Common employer super mistakes and how to avoid them¶

Most super problems are not caused by anything dramatic — they come from a handful of easy-to-make mistakes. The reassuring part is that once you know what they are, each one is simple to avoid. This lesson walks through the common ones and gives you a practical fix for each.

In one line

The usual super mistakes are paying late, using the wrong earnings base, missing eligible workers, wrong fund details, letting salary sacrifice reduce the base, and not reconciling — and each has a simple fix.

Why this matters¶

The Australian Taxation Office (ATO) says employers who do not pay super in full, on time and to the right fund have to pay the super guarantee charge on top of what they owe. Nearly all of that comes down to the mistakes below. Catching them early keeps your workers' super right and keeps you out of trouble.

What you will learn¶

The most common super mistakes employers make
Why each one happens and what it affects
A practical fix to avoid each one

Understanding the concept¶

Here are the common mistakes, and how to avoid each.

1. Paying late — super not received by the fund in time. Super counts as paid when the fund receives it, not when you send it. The ATO explains that from 1 July 2026 super must reach an eligible employee's fund within 7 business days after each payday. If it arrives after the cut-off, it is late. Fix: pay early enough to allow for processing time, and confirm the money actually reached the fund rather than assuming it did.

2. Using the wrong earnings base. From 1 July 2026 the ATO says super is worked out on qualifying earnings. The ATO describes qualifying earnings as bringing together ordinary time earnings and other payments — including commissions and amounts salary sacrificed to super. Working super out on a smaller or wrong base underpays it. Fix: make sure super is calculated on the full qualifying earnings, not just base wages.

3. Missing eligible workers. Some workers are easy to overlook. The ATO says contractors paid mainly for their labour are treated as employees for super — even if they quote an ABN — and super is worked out on the labour part of their invoice. The ATO also says a worker under 18 is eligible when they work more than 30 hours in a week. Fix: check every worker's eligibility, including contractors and young workers, not just your salaried staff.

4. Wrong fund details. If the fund or member details are wrong, the payment can be rejected or land in the wrong place, which shows up as unpaid super. Fix: confirm each worker's fund and member details are correct and up to date before you pay.

5. Letting salary sacrifice reduce the base. A worker may sacrifice part of their pay into super. The ATO is clear that amounts sacrificed that would otherwise have been qualifying earnings are still counted in the earnings you work super out on. Salary sacrifice must not shrink the base. Fix: work out super on the pre-sacrifice earnings, so the sacrifice does not reduce the super you owe.

6. Not reconciling. Without checking, small errors go unnoticed until they add up. Fix: regularly reconcile the super you worked out against the super the funds actually received, so gaps are caught early.

For accountants & bookkeepers

From 1 July 2026 the ATO's base for both super and the super guarantee charge is qualifying earnings, which folds in ordinary time earnings plus items such as commissions and salary-sacrificed amounts. The contractor test turns on a contract that is wholly or principally for the person's labour. Always confirm the current thresholds and process on the ATO's own pages rather than from memory, as rules and timing changed at 1 July 2026.

Example¶

Priya runs a landscaping business. She reviews her super process against the common mistakes. She finds two issues: a contractor who is paid mainly for labour was never set up for super, and one payment last cycle was sent so late it may not have reached the fund in time.

Priya fixes both. She sets the contractor up so super is worked out on the labour part of their invoices, and she moves her super run earlier so payments have time to reach the funds. She then reconciles what she worked out against what the funds received, and everything now matches. A quick review caught problems before they grew.

Common mistakes¶

Assuming super is "paid" when you send it — it counts when the fund receives it.
Working super out on base wages only, instead of full qualifying earnings.
Overlooking contractors and eligible under-18 workers.
Not double-checking fund and member details before paying.
Letting salary sacrifice reduce the earnings super is worked out on.
Never reconciling, so small errors build up unseen.

How this works in myaccountant¶

In the app — myaccountant keeps records of the super it works out and the super you pay, so you can reconcile the two and spot a worker who was missed or an amount that fell short. It also flags payments that are at risk, so late or problem payments are easier to catch before they become a shortfall.

Key points¶

Super counts as paid when the fund receives it — allow time so it is not late.
Work super out on full qualifying earnings, not just base wages.
Check every worker's eligibility, including contractors and under-18s over 30 hours.
Keep fund and member details correct so payments are not rejected.
Salary sacrifice must not reduce the earnings super is worked out on.
Reconcile regularly so small errors are caught early.

Learn next¶

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

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