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As an employer, you have a legal obligation to provide superannuation support to your employees. Superannuation is savings put aside to provide income upon retirement. The purpose of compulsory superannuation is to make sure as many people as possible will have income support when they retire.

Employers pay superannuation contributions into a complying superannuation fund or retirement savings account (RSA). The Australian Superannuation Guarantee legislation requires employers to provide contributions for employees as a percentage of their base earnings. The Australian Government website provides a list of links to help you understand superannuation and your responsibilities as an employer.

Employees generally have the right to choose their own superannuation fund or RSA, however, it's a good idea to have a default fund available for staff. When an employee begins work for you there are forms regarding superannuation which must be lodged with the Australian Taxation Office, available from their website.

Contributions of at least 9% of base earnings must be made each quarter to the relevant employee superannuation fund or RSA. Employers must keep records of all contributions made to superannuation funds. You also have an obligation to report to your employees all superannuation contributions that you have made.

Certain employees may be exempt from receiving superannuation entitlements. These workers include:

• those earning less than $450 per month base salary
• under 18 years old and working less than 30 hours per week
• those over the age of 70

Refer to the Superannuation Guarantee Eligibility Tool for further information on exemptions as they are subject to change.

There are penalties for employers who fail to provide minimum superannuation contributions for their employees. Employers who lodge late contributions are also obliged to pay charges to the ATO. More information can be found on the ATO website.