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Superannuation Mistakes: Common Pitfalls and Employer Compliance Tips

Written by Thavishya Kinson | May 5, 2025 8:00:00 PM

Superannuation might feel like just another payroll task, but it’s one you really can’t afford to get wrong. Whether it’s late payments, incorrect amounts, or missed employees, super mistakes can quickly add up in penalties and stress.

In this blog, we’ll break down the most common superannuation pitfalls and show you how to stay compliant without the headache.

 

Common Superannuation Mistakes to Watch For

1. Late Payments

This is one of the most frequent—and expensive—mistakes. Super needs to be paid to your employee’s fund at least quarterly, by the ATO’s due dates.

Miss the deadline? You’ll have to pay the Superannuation Guarantee Charge (SGC), which includes interest, admin fees, and can’t be claimed as a tax deduction.

2. Incorrect Super Calculations

Super is generally calculated as 11% of ordinary time earnings. But many businesses get tripped up by what’s included in that.

For example:

  • Overtime payments don’t count
  • Some allowances and bonuses do

3. Misclassifying Employees

Think someone’s a contractor and doesn’t need to pay super? Think again.

If you treat a contractor like an employee—same hours, same control—you may still need to pay them super.

4. Missing New or Part-Time Staff

Sometimes businesses forget about part-timers, casuals, or new starters—especially if they’re working short hours.

Important: As of July 2022, every employee may be entitled to super, regardless of how much they earn.

5. Poor Record-Keeping

If the ATO audits you, they’ll want to see detailed records of:

  • Who you paid
  • How much
  • When
  • Where it went

What Happens If You Get It Wrong?

Mistakes in super don’t just cause headaches—they can seriously impact your business.

You could face:

  • Fines and penalties
  • Loss of tax deductions
  • Unhappy employees
  • ATO investigations or audits

And all of this can be avoided with a few simple systems in place.

 

How to Stay Compliant with Super

Staying on top of super doesn’t have to be complicated. Here are some easy ways to stay compliant:

Use Payroll Software

Tools like Romeohr can calculate super for each employee, track payments, and even alert you before a deadline.

Set Calendar Reminders

Even if you automate your payroll, set reminders for quarterly due dates—just in case something goes wrong.

Stay Updated

Super rules change, so check the ATO website regularly or subscribe to updates.

Audit Regularly

Take 10 minutes every quarter to double-check your super calculations, payments, and employee list.

Educate Your Team

Make sure anyone handling payroll knows the basics of super—don’t leave it all to one person.

 

Final Thoughts: Super Matters, for You and Your Team

Superannuation is more than a compliance box to tick—it’s part of your team’s financial future. And when your business handles it properly, it builds trust, confidence, and a strong workplace culture.

With a bit of planning and the right tools, avoiding super mistakes is easy. Stay informed, stay consistent, and let your payroll system do the heavy lifting.