Many businesses across Australia have benefitted from the employment of casual workers, as they provide an increased level of flexibility. However, the Australian Taxation Office (ATO) urges businesses to remember that casual employees may be entitled to super.
The ATO reminds businesses that:
- You may be required to pay super guarantee (SG) regardless of whether your employee is full-time, part-time or casual.
- You will have to pay SG on top of an employee’s wages if you pay them $450 or more (before tax) in a calendar month.
- Employees below the age of 18 must also work for more than 30 hours per week to qualify for SG.
Super guarantee is currently calculated at 9.5% of a casual employee’s ordinary time earnings, which includes their wage plus any casual or shift leadings for ordinary hours of work. This also takes into consideration commissions and some allowances, but it does not include overtime payments.
The ATO has an online SG eligibility tool to work out if casual workers are entitled to super.