How often does my employer need to pay my super?

Discussion in 'Legal Issues' started by MarkA, 6th Aug, 2014.

  1. MarkA

    MarkA Member

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    I've been paid super twice in the last year, is this legal? I thought it had to be paid at least quarterly?
     
  2. The Fence

    The Fence Banned

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    Im told to pay monthly.
     
  3. Mitch1

    Mitch1 Member

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  4. redwing

    redwing Progress Not Perfection

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    Quarterly and within 14 days of the end of the period, otherwise there are penalties for the employer I believe

    Though I've heard of a company not paying it for up to 2 years in the past (then they folded).
     
  5. Mitch1

    Mitch1 Member

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    If you mean twice in the last calendar year, they are still meeting their legal obligation and the next super due would be end of sept., end of dec. etc

    If it is twice in last financial year...oops
    Twice this financial year they are ahead of themselves ;)
     
  6. MarkA

    MarkA Member

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    I was paid on the 05/06/2014 and before that the 13/12/2013.
     
  7. Mitch1

    Mitch1 Member

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  8. MarkA

    MarkA Member

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    Thanks. I'll speak to them.
     
  9. Paul@PFI

    Paul@PFI Tax, SMSF & Planning

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    The requirements for an employer paying superannuation exist in the Superannuation Guarantee Charge Act. It may also be mirrored in an award or enterprise agreement etc.

    The employer has obligations :
    Pay all SGC entitlements (ie 9.5% + salary sacrifice) within 28 days of the end of each quarter. If they fail to do this there is a default debt that arises under the SGC rules. It comprises the debt, an admin fee plus interest at 10% backdated to the 1st day of the quarter (ouch). NONE is tax deductible. The employer self-assess and pays the ATO. They then sort out your share and you choose which fund etc. I bet they haven't done this.

    So I'm going to guess your employer isn't paying and still claiming the deduction - Hmmm.

    You can initiate a complaint with the ATO since the employer has breached tax law. The ATO administer super obligations as well. You can (and should) also initiate a complaint with Fair Work Australia. Its a criminal offence to sack a person making a compliant about entitlements being underpaid. They tend to walk in and inspect the employment records and avoid identifying the complaintant. You wont be the only one.

    You may ask your employer why they haven't paid your entitlements. The High Court considers super to be part of wages and its not a bonus. Its a entitlement. If they agree to rectify the breach you may avoid involving the ATO and FWA. But if its a unionised workplace I would notify the union.

    The employee Directors can be served a Directors Penalty Notice by the ATO if they don't comply quickly. It horrible and forces the company debt to become a personal debt. The notice has two options 1. Pay it within 14 days or 2. Be in breach and liable.
     
  10. Scott No Mates

    Scott No Mates ...and people wonder why?

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    In some instances, like Building Industry On Site Award, it is monthly. This is driven by CBUS who expect the monthly contributions. Most others allow ad-hoc eg for salary sacrifice but quarterly is the norm.
     
  11. Paul@PFI

    Paul@PFI Tax, SMSF & Planning

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    Its actually contained in the enterprise agreement / award. Ratified by Fair Work Aust. CBUS are just greedy and chase it. They cant enforce jack. (FWA, employee or the union can) Many employers get these demands and persistent requests for immediate super etc...They have ZERO legal right to demand a single thing. The trustee only has an obligation to credit contributions when received in accordance with SIS reg 7.08.

    There is a well known law firm that includes in their SMSF deed that the trustee can impose a debt upon a employer and apply a monthly fee if super is paid late. Even impose a lien over employer assets (WTF ?) That is 100% BS. The Trustee has no legal rights to become involved in the members entitlements and its contrary to SGC anyway. Just one of many examples of stupid trust deeds for SMSFs that are inconsistent with law.