You will have to pay super guarantee for employees if you pay them $450 or more in salary or wages (before tax) in a calendar month. The general super guarantee minimum percentage remains at 9.5% for the period 1 July 2020 to 30 June 2021.

You have to pay super for some contractors even if they quote an ABN. Contractors paid mainly for their labour are employees for superannuation guarantee purposes.

You must make super contributions for these individuals if you pay them:

  • under a verbal or written contract that is wholly or principally for their labour – that is, more than half the dollar value of the contract is for their labour
  • for their personal labour and skills – which may include physical labour, mental effort or artistic effort – and not to achieve a result
  • to perform the contract work personally – that is, they must not delegate.

If you make a contract with someone other than the person who’ll actually provide the labour – for example, with a company, trust or a partnership – you don’t pay that person super.

Following link will take you to the ATO Employee/contractor decision tool.https://www.ato.gov.au/Calculators-and-tools/Host/?anchor=ECDTSGET&anchor=ECDTSGET/questions/ECDT#ECDTSGET/questions/ECDT