Super for small businesses

Build super into payroll, not the calendar

Super is part of paying people correctly. The process begins with worker classification and identifying qualifying earnings, continues through the payroll calculation and choice-of-fund data, and ends only when the contribution reaches the employee’s fund. A payslip entry on its own is not payment.

For paydays from 1 July 2026, Payday Super requires contributions to be made with salary or wages and they generally need to reach the fund within seven business days. This replaces the old habit of treating super as a quarterly cash-flow event. Businesses need enough cash reserved each pay cycle and a process for rejected payments.

Get employee and fund data right at onboarding

Give eligible employees a standard choice form and validate the fund name, unique superannuation identifier and member number. If an employee does not make a choice, follow the stapled-fund and default-fund process that applies. Keep the request, response and any ATO result with the payroll record.

Check whether contractors paid mainly for their labour may be employees for super purposes. Also separate compulsory employer contributions from salary sacrifice amounts: sacrificing salary cannot reduce the employer’s minimum obligation, and the amounts need to be reported correctly.

Reconcile every payment and exception

After each payroll run, reconcile the payroll report to clearing-house confirmation and then to any rejection report. Common problems include closed accounts, incorrect member details and fund mergers. Assign one person to resolve exceptions immediately instead of allowing them to sit until year end.

Late or missing contributions can trigger the super guarantee charge, which is not simply the unpaid amount and can create extra administration and cost. If a deadline has been missed, use current ATO guidance promptly rather than quietly paying late and assuming the issue is cured.

• Calculate from accurate worker and earnings data.
• Reserve the cash with each payroll.
• Keep evidence that the fund received the payment.
• Resolve rejected contributions before the due date.