Running a business or employing people is likely to involve superannuation obligations. Most of your employees, whether full-time, part-time or casual, will be covered by the superannuation guarantee legislation.

As an employer you are required to make superannuation guarantee contributions on behalf of your eligible employees at least once each quarter.

Contributions are due by: 28 October, 28 January, 28 April and 28 July each year.

You now need to:

• Calculate 9% of the earnings base for each eligible employee (generally employees who are paid $450 or more per month).
• Pay this to a complying superannuation fund at least quarterly.
• Report in writing to your employees the details of the contributions you have made to their funds at least once every quarter on a pay slip, letter or email. You should note amount contributed, name of fund and, if known, the employee's account number.
• Keep a record of when, what and how you reported superannuation contributions to your employees.

If you don't make your superannuation contributions by the cut off dates you will face penalties. You may also face penalties if you don't report details to your employees.

Super Choice
Choice of superannuation fund was implemented on 1 July 2005 and gives many employees the right to choose which superannuation fund will receive their employer superannuation guarantee contributions. You should have offered choice of superannuation fund to your existing eligible employees by 29 July 2005. New eligible employees must be provided with a Standard choice form within 28 days of their start date.

If you're an employer there are 3 steps to follow to meet your choice of fund superannuation obligations:

• Step 1 - Identify eligible employees
• Step 2 - Provide a Standard choice form
• Step 3 - Act on an employee's choice.

The Australian Government's superchoice.gov.au website contains information to help employees, employers and professional advisers with super choice.