How do I enrol a new employee?
Check whether the employee is already a member of HESTA. If they are, they have probably already completed a New member application form. They must not fill in another application as it may affect their insurance arrangements.
If the employee has not yet joined HESTA:
Add your employee’s details to the next contribution advice you send to HESTA. Remember to include:
- the employee’s full name
- date of birth
- address details
- the employee's TFN (if provided)
- the date the employee began employment
- the employee's HESTA emmbership number (if one has been issued previously)
What is the superannuation guarantee (SG)?
Employers in Australia are required by the superannuation guarantee (SG) legislation to make contributions for most employees to a complying super fund. The amount contributed by employers is equal to 9% of an employee’s earnings base, based on ordinary time earnings (OTE). From 1 July 2008, all employers must use OTE as the earnings base for all eligible employees.
Financial penalties are payable to the Australian Tax Office if SG amounts are not paid to a super fund by 28th day after the end of the relevant quarter (i.e. 28 October, 28 January, 28 April and 28 July).
HESTA expects contributions on behalf of your employees to be made monthly. Contributions can be made more frequently (eg fortnightly), or quarterly by agreement. Contact us to change your current payment arrangements.
When does the SG apply?
Under the Federal Government’s SG legislation, you must generally pay SG contributions for employees over18 and under 70 years of age who earn $450 (before tax) or more in a calendar month.
There is a maximum limit on the amount of super support you are required to provide for your employees. This is indexed each year.
For 2008/09, you only need to pay SG contributions on earnings up to $152,720 p.a. (assessed quarterly ie $38,180 per quarter).
You do not have to make SG contributions for employees who:
- earn less than $450 (before tax) per month
- are aged 70 or over
- are under age 18 and working 30 hours or less per week
- are certain other employees specified by legislation
Subject to legislation, you may choose to make contributions anyway, or may be obliged to contribute under an industrial award or workplace agreement. SG payments are calculated as a percentage of an employee’s ordinary time earnings (OTE). The SG contribution percentage is currently 9%.
OTE are before-tax earnings which are the result of an employee’s ordinary hours of work. These generally do not include overtime. More information on OTE is available on www.ato.gov.au/super . From 1 July 2008 all employers are required to use OTE as the basis for calculating their SG obligations.
What are the important HESTA numbers?
- Fund Australian Business Number (ABN): 64 971 749 321
- Trustee Australian Business Number (ABN): 66 006 818 695
- Superannuation Product ID No. (SPIN): HST0100AU
- Superannuation Fund Number (SFN): 129638
- Registrable Superannuation Entity Licence No (RSE): L0000109
- Super Fund Registration Number: R1004489
- Australian Financial Services Licence (ASFL): 235249
- Phone: free call 1800 813 327
- Overseas Callers: +613 9200 4714
How do I make a complaint?
HESTA members have the right to enquire into or complain about the operation of the Fund as it relates to them or their investment. Please call us first on 1800 813 327 to discuss your enquiry or complaint. If you require further assistance you can:
- Write to the Complaints Officer, HESTA, PO Box 600, Carlton South, Vic 3053, outlining the details of your complaint. HESTA makes every effort to deal with your concerns as quickly as possible.
- If the matter is not resolved within 90 days, or you are dissatisfied with the outcome, you may contact the Superannuation Complaints Tribunal (SCT), an independent body established by the Federal Government to assist super members or their beneficiaries to resolve certain types of complaints with Fund trustees. The SCT can only help you after you have been through HESTA's complaints procedure (Step 1). You can contact the SCT for the cost of a local call from anywhere in Australia on 1300 884 114 or visit www.sct.gov.au
- If you have a complaint about a non-superannuation-related product (for example, advice provided by HESTA staff about banking or managed investment products) that is not resolved within the agreed time (generally 45 days), you may contact the Financial Ombudsman Service Ltd (FOS). This is an external complaints resolution scheme approved by the Australian Securities and Investments Commission. You can contact FOS on 1300 780 808 or visit www.fos.org.au
How can I submit contribution advice forms?
There are a number of ways you can submit contribution advice forms:
- Employer Online (our web-based service)
- Contribution advice form via post
- Computer printout from your payroll application via post
- Payroll transfer via email or disk
- Preformatted spreadsheet via email or disk
What is Employer Online?
Employer Online is our way of making your job easier! If you have fewer than 50 employees you can use our free online service to:
- submit contribution returns
- add new employees
- change employee details
- print reports
- view your account history
Contributions are paid by direct debit when you submit your Contribution advice. For full details of all of your contribution and payment options click here .
Employers with more than 50 employees may find other contribution methods more efficient.
Can I send payment electronically?
Yes, if you submit your Contribution advice via Employer Online, payroll transfer or a preformatted spreadsheet.
Why do I need to pay monthly contributions on time?
There are many reasons you must pay your monthly contributions on time:
- as a participating employer, you have a legal responsibility to pay monthly amounts of member contributions authorised to be deducted from employees’ salary or wages, and to submit contributions advice with each payment
- if your contributions for your employees fall into arrears, their account balances may be insufficient to maintain their disability and death cover (which could have tragic consequences if your employee dies or suffers a disabling illness or injury)
- your employees benefit from contributions being made on time because interest accrues on each contribution from the day your cheque or EFT is received.
You can check your monthly contributions by visiting Employer Online .
What is the difference between salary sacrifice and employee after-tax contributions?
Salary sacrifice
Salary sacrifice is an arrangement between the employer and employee where the employee consents to reduce their gross salary by a nominated amount. The employer uses this amount to increase their super contributions for the employee.
Most employees entering a salary sacrifice arrangement expect the employer to continue making award or SG contributions based on their pre-sacrifice salary.
Tip: you should list salary sacrifice contributions in the Employer extra/salary sacrifice column of your Contribution advice , or note them if using data transfer or printout from your payroll application.
Employee after-tax contributions
Employee after-tax contributions are amounts paid by your employee from after-tax income. Government regulations require these to be forwarded to HESTA by the 28th of the month following deduction from salary. Making your regular payments to HESTA by the 14th of the month will ensure you meet this requirement. The government imposes substantial penalties on employers who fail to meet this legislative requirement.
HESTA can only accept after-tax contributions if we have the member's TFN.
Tip: You should list these contributions in the member (after-tax) column of your contribution advice or note them if using data transfer or printout from your payroll application.
Why is it important to correctly identify employee after-tax and salary sacrifice contributions?
HESTA relies on the information in your Contribution advice to appropriately tax the contributions.
Salary sacrifice
Salary sacrifice contributions are subject to 15% contributions tax. They are also reported to the Australian Taxation Office.
Employee after-tax contributions
Because employees have already paid income tax before remitting their employee after-tax contributions, these do not incur contributions tax.
These contributions are exempt from any lump-sum tax that may be payable, when returned to the employee as part of their eventual benefit payment. That’s why it’s important to list them in the Member (after-tax) column of your Contribution advice , or note them if using data transfer or printout from your payroll application.
For more information visit www.ato.gov.au
Do I have to make super contributions for casual employees?
You generally need to make super contributions for casual employees over age 18 and under age 70 if you pay them more than $450 before tax per month, or if it is specified in their award/workplace agreement.
If you do not have a super obligation under an industrial award or workplace agreement, you do not have to contribute for employees who earn less than $450 before tax per month, are aged 75 or over, or under age 18 and working 30 hours or less a week.
Contact the Australian Tax Office on 13 10 20 or visit www.ato.gov.au to clarify any tax matters or your SG obligations.