Weighing your superannuation options for employees
If your business is doing well and your employees are bringing in a good deal of profit every year, that's wonderful news. But you may well be obligated to give some of that money back to the workforce in the form of retirement savings. In this vein, many organisations today are devoting more resources to superannuation, a system in which companies and their employees work together to plan pension funds.
Planning for retirement is complicated. There are many possible investment routes you can take.
Planning for your employees' retirement can complicated as there are a lot of ground rules to play by and many possible investment routes you can take. It's best to study up on the process and carefully consider your options before making any rash decisions.
Your superannuation obligations in Australia
When trying to figure out your plans for employee wealth management, the first step is understanding your legal requirements. In Australia, your obligations depend on the specific type of employees you have on your staff – employees, or contractors.
According to the Australian Taxation Office, your needs are clear if you have full-time employees on your staff. You will need to withhold some taxes from their wages and report the withheld amounts to the ATO. On the other hand, if you work mainly with contractors, then legally they're responsible for their own tax obligations, and your legal requirements might be more lax.
Regardless, you might want to devote resources to wealth management because it's a great way to engage and retain employees.
Finding the right fund for your workforce
Delving into superannuation services can be overwhelming because there's a vast array of different directions you can turn. For example, consider the process of choosing the right investment fund for your employees.
There are many questions you'll need to ask. Which fund has the strongest track record over the last five or 10 years? Which one comes with hidden fees that will increase your company's costs and burden your employees? Which one has extra benefits like educational seminars and financial consulting? Ultimately, you want to choose a course of action that will be best long-term for both your employees and your business.
Work with accountants who can help
Superannuation is a complicated subject, especially in Australia where there are many regulatory hurdles to clear. You may well decide that it's best to reach out for professional help. If you do, Wilson Porter is here to offer that help. We have a team of chartered accountants who are ready to assess all your company's financial needs.
We have a wealth of experience with establishing funds, administering contributions, ensuring compliance and handling any audits that may arise. If you need accounting experts who have been around for a long time and seen every scenario, you can trust Wilson Porter.