Get Super benefits for your business
There’s no question that superannuation is becoming increasingly complex. Are you one of the many senior managers and business owners throwing their hands up and putting Super in the too hard basket? The problem with that approach is that you will end up costing your employees and your business or organisation money.
Here are three common issues that can be easily be remedied with a Corporate Super Plan and cost- effective management of Super.
1. Not talking Super with new employees
Many employers simply obtain the details of their new employees’ existing Super account and make contributions. It seems the most efficient thing to do at first glance but there are pitfalls.
At the very least you must have documented that you have communicated the details of any Super plan to a new employee and given them choice in selecting a fund.
Making payments to and managing relationships with multiple Super funds is an administrative headache. That time could be better spent elsewhere in your business.
Taking a little time up front to create a Corporate Super Plan that meets the needs of your employees and your business is efficient.
2. Not managing your Corporate Super Plan
For those of you with a Corporate Super Plan, that is a good first step.
Do you know if it is still meeting your needs and maximising group benefits such as insurance or are you solely reliant on the messages given by that fund? Simply swapping one Corporate Super Plan for another isn’t always the solution.
3. Not thinking Super for recruitment and retention
Superannuation is a vital part of wealth creation and retirement planning. Helping your staff with these issues is something they’ll value. This brings me to salary sacrificing. Given technological advances in payroll and superannuation platforms, it is a cop-out for organisations to say that they cannot offer an employee the flexibility to accumulate wealth tax effectively. The good people you want to attract and retain in your business know that too.
Are you nodding at these points but still thinking it is too hard? The solution is active, efficient and expert management. If you don’t have resources in-house then a financial planning group with corporate Super expertise is vital.
A good Corporate Super service will:
• incorporate Super with existing salary packaging and other remuneration benefits
• set up simple systems for easier, more efficient administration outline a communication program for employees and other stakeholders
• deal directly with new employees about Super
• provide regular reviews of fund performance and industry changes with recommended actions.
They should also be able to show you how they will align Super arrangements with your business objectives, not just do the paperwork.