Superannuation on my bonus
Monday 03 November, 2008 | SuperLiving
Q: I WOULD like to know whether, if an employee is paid a production bonus on top of their basic wage, is this bonus subject to the 9% SGC (Superannuation Guarantee Calculation) or is the SGC payable only on the basic wage only?
Our expert is Michael Davison, Superannuation Policy Adviser for CPA Australia.A: Since 1 July 2008, an employer has been required to pay the compulsory 9% superannuation guarantee based on your ordinary time earnings. Generally, this is the amount you earn for the ordinary hours you usually work. That means one-off bonuses such as a Christmas bonus would not be included in ordinary time earnings.
However, bonuses based on specific criteria, such as performance or production are included in your ordinary time earnings. So, if you're being paid a production bonus, an employer should be including this in any superannuation guarantee calculation.
Where to find out more
For more information about individuals and superannuation, visit the relevant section of the ATO website: Individuals’ superannuation requirements
A CPA registered accountant will also be able to give you information specific to your own circumstances. Visit www.cpaaustralia.com.au to find a Certified Practising Accountant near you.
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