Employees Aged Under 18 and Paying Superannuation



The Law

For most employees, Australian businesses are required to pay an employee super on top of that person’s wages if the employee earns more than $450 (before taxes) in a calendar month.


If an employer has employees who are under 18 years of age, then the employee must also work more than 30 hours per week to qualify for their super contributions.


You must pay super for an employee aged under 18 years if they:

  • Are under 18 years of age.

  • Are paid $450 or more before tax in salary and wages in a calendar month.

  • Work more than 30 hours a week.

  • Are not exempt under another exemption criteria.

Examples of questions our support team are often asked:

  • If an 18 year old employee worked more than 30 hours in one week but was not paid $450.00 or more in the calendar month, they are exempt under the $450.00 rule.

  • If they were paid $450.00 or more in a calendar month but did not work more than 30 hours a week in any week within that calendar month, there is no need to pay super for them.

However;

  • If they were paid $450.00 or more in a calendar month but only worked more than 30 hours a week in one week during that calendar month, SG would be paid on the salary or wages earnt for that one week.


Source - Institute of Certified Bookkeepers

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