Superannuation

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

Most of your employees, whether full time, part time or casual will be covered by the superannuation legislation.

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

Like the tax system, the superannuation guarantee is administered on a self-assessing basis. There are laws requiring employers to meet their obligations and it is your responsibility as an employer to make sure the superannuation arrangements you have in place for your employees satisfy the minimum superannuation guarantee requirements.

You are obliged to contribute a minimum of 9% of an eligible employee’s earnings base to a complying superannuation fund or retirement savings account.

Employers are also required to offer choice of superannuation fund to their eligible employees.

If employees pay their own personal superannuation from their net salary or wage after tax, this does not count towards meeting your obligations under the superannuation guarantee, even if you, as the employer, have arranged for the payment to go into their superannuation account.

The superannuation support you provide for your employees is usually tax deductible up to certain limits.

You must keep the necessary records, understand the penalties for failing to comply with choice of superannuation fund and understand your ongoing superannuation responsibilities. If you do not then you may be liable for the superannuation guarantee charge.

For detailed information refer to the ATO’s superannuation information for employers on www.ato.gov.au and the Superannuation Choice site.

Workers' Compensation

Workers' compensation provides valuable protection to workers and their employers in the event of a workplace-related injury or disease. Through workers' compensation, injured workers can receive weekly payments to cover loss of earning capacity, payment of medical expenses and vocational rehabilitation expenses, where necessary, to assist them return to work.

All NSW employers must have a workers' compensation policy to insure themselves against compensation claims for workplace injuries. If you operate a trade or business and hire workers on a regular, casual or contract basis, you must maintain a current NSW workers' compensation policy.

In certain circumstances, you may also be liable for the workers' compensation of any contractors you employ, as they may be regarded as deemed workers.

Currently, there are six agents who issue workers compensation policies to NSW employers, however, in the coming months, a number of new organisations (as well as agents) will be contracted to provide claims and policy services. Over time, these new arrangements will ensure an improved level of service in the management of your policy and claims.

To take out a workers compensation policy, you will need to provide your agent with information about:

• the nature of your business activity
• past workers compensation insurance details
• the number of workers you employ
• an estimate of wages paid to your workers.

Your workers' compensation premium is based upon the risk of injury in the industry in which you work, the wages you pay your workers and, if your tariff premium is greater than $10,000, your claims expense resulting from your workplace safety record. The better you manage workplace safety, the lower your premium.

Your responsibilities

As an employer, you must:

• keep your workers compensation insurance policy up-to-date
• keep correct wage records of your workers for at least seven years
• keep a register of injuries that is accessible to all your workers.
• report all work related injuries or illnesses to your agent within 48 hours if they are likely to result in a workers compensation claim .
• display the ‘Watching out for you’ poster prominently in your workplace – it summarizes your obligations under the Workers Compensation Act 1987 and the Workplace Injury Management and Workers Compensation Act 1998, and provides contact details of your agent and return to work coordinator.
• provide workers with a copy of your return to work program upon request – the program should be developed in consultation with your workers and updated at least every two years, or following changes to the legislation or your workplace.

For full details, and other useful information view www.workcover.nsw.gov.au small business Safe Business site.
Workcover has incentive programmes to encourage employers to put programmes in place to improve the occupational health and safety and injury management practices in their workplaces.