As a small business owner, it can be easy to overlook the importance of superannuation. However, not only is it a legal requirement to provide your employees with superannuation contributions, but it can also provide some tax benefits for your business.
Superannuation is essentially a way for employees to save for their retirement, and as an employer, you are required to contribute a percentage of their earnings into a super fund. For small businesses, this can seem like an added expense, but it is important to remember that it is an investment in your employees' futures and can help attract and retain talented staff.
One of the benefits of providing superannuation contributions for your employees is the potential tax benefits for your business. Your super contributions are tax-deductible, which means that you can reduce your taxable income and potentially lower your overall tax bill.
However, managing cash flow during tough economic conditions can be a challenge, especially for small businesses. It is essential to ensure you can still meet your superannuation obligations, even when times are tough. Here are some tips for managing cashflow and still paying your super:
- Create a budget: Clearly understanding your income and expenses can help you identify areas where you can cut costs and save money.
- Negotiate payment terms: If you are struggling with cash flow, consider negotiating payment terms with your suppliers or customers to help ease the burden.
- Seek financial advice from a business consultant or an accountant: Professional business advice can help you create a plan for managing your cash flow and meeting your superannuation obligations.
- Prioritise your superannuation payments: It is important to prioritise your superannuation payments and ensure that they are made on time. This not only ensures that you meet your legal obligations but also helps you avoid any potential penalties.
Need help? Contact your local Business Development Manager for expert guidance.
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The information contained in this article does not constitute financial product advice. REI Super does not give any warranty to the accuracy, completeness or currency of the information provided. Although REI Super makes every reasonable effort to maintain current and accurate information, you should be aware that there is still the possibility of inadvertent errors and technical inaccuracies. REI Superannuation Fund Pty Ltd ABN 68 056 044 770, AFSL 240569, RSE L0000314 Trustee of REI Super (ABN 76 641 658 449), SPIN REI0001AU, RSE R1000412. MySuper unique identifier 76641658449129