Superannuation (super) is Australia's mandatory retirement savings system. Employers must contribute a percentage of each eligible employee's earnings to a compliant super fund.
Superannuation is a compulsory employer contribution in Australia, currently set at 11.5% of an employee's ordinary time earnings (rising to 12% from 1 July 2025). Super must be paid for all eligible employees - generally those aged 18 and over (or under 18 if they work more than 30 hours per week). Contributions must be paid at least quarterly to a compliant super fund by the due dates: 28 days after the end of each quarter. Late super payments trigger the Superannuation Guarantee Charge (SGC), which includes the shortfall, interest and an administration fee - and the SGC is not tax-deductible. Employees can choose their own super fund (Choice of Fund), and employers must offer this choice. Super payments must be made through SuperStream-compliant methods. From a bookkeeping perspective, super is an expense that accrues each pay period and is typically paid quarterly. SortBooks can suggest the right accounts for super transactions in Xero, so the expense is recorded correctly each period.
SortBooks helps with the bookkeeping behind superannuation by connecting to your Xero account and using AI to suggest the right account for transactions sitting in catch-all accounts, learning from your own past coding. Instead of fixing superannuation by hand, you review each suggestion, approve it, and SortBooks updates Xero, GST code included. Then ask the AI CFO about your numbers, using live Xero data.
Payroll is the process of calculating and distributing wages, withholding taxes, managing super/pension contributions and complying with employment tax obligations.
PAYG (Pay As You Go) withholding is an Australian system where employers withhold tax from employee wages and remit it to the ATO on their behalf.
The ATO is Australia's principal tax collection agency, responsible for administering income tax, GST, superannuation, excise and other federal tax obligations.
Connect Xero, check the AI's suggestions and approve the changes. SortBooks updates Xero for you.