Paying super with payroll

Are you still paying superannuation quarterly? Here’s why aligning your super payments with payroll could be a game-changer for your business.

1. Simplify Your Cash Flow Management ✨
Paying super with each payroll cycle spreads out the expense, making it easier to manage your cash flow compared to one large quarterly payment. 💰

2. Avoid the Last-Minute Rush 🚨
By paying super alongside wages, you reduce the risk of missing deadlines and avoid the stress (and potential penalties) of scrambling to meet quarterly due dates. ⏳

3. Build Goodwill with Employees 👨‍💼👩‍💼
Super is part of your employees’ hard-earned income. Paying it promptly shows you value them and their financial security, boosting trust and morale. ❤️

4. Strengthen Compliance ✅
Staying on top of super contributions with every payroll ensures you remain compliant with Australian Superannuation Guarantee (SG) obligations, reducing the risk of errors or fines. 📈

5. Save Time with Automation 🔧
Many payroll software solutions make it simple to process super payments automatically when you run payroll. This efficiency frees up your time for other priorities. ⏰

We almost always encourage our clients to pay super at the same time as processing payroll, especially if their Xero plan includes automatic superannuation.

The exception to this is when super payments are very small and are processed manually outside of Xero (most commonly via the ATO’s super clearing house). In these instances, it’s not worth manually processing a small super payment every week or fortnight, and in this case we would suggest processing / paying quarterly. This commonly occurs in sole operator businesses.