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Annie_M(Newbie)Newbie
2 Oct 2021

We had a casual employee who is a retiree that worked for one day in the last quarter and the superannuation guarantee (SGA) amount is $8.08. She has closed her super account so I can't pay into that account and it doesn't seem worthwhile setting up a new account for such a small amount. How do I pay the amount to ensure that we meet our SGA obligations and she receives the money?

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1 replies
595 views
1 replies

Most helpful response

Most helpful reply

2 Oct 2021

Remember that superannuation is a proportion of salary earned. You should "settle" her "account" in full. As an employer, you are to be credited with being so diligent when so many employers just don't bother. Document and tax the amount in their termination pay "reckoning" a notice or letter listing each amount and the tax applied to the former employer and report it to the ATO. If you have to correct anything, they will tell you soon enough. If you've already paid her, just put it in her account and document what you did (in good faith). The likely penalties for such a small error are unlikely as long as you show due diligence. Even though the amount is small get advice on how to write down that money as it may happen again in future and the amount may not be as small so you should be well advised at all times.

All replies

Most helpful reply

2 Oct 2021

Remember that superannuation is a proportion of salary earned. You should "settle" her "account" in full. As an employer, you are to be credited with being so diligent when so many employers just don't bother. Document and tax the amount in their termination pay "reckoning" a notice or letter listing each amount and the tax applied to the former employer and report it to the ATO. If you have to correct anything, they will tell you soon enough. If you've already paid her, just put it in her account and document what you did (in good faith). The likely penalties for such a small error are unlikely as long as you show due diligence. Even though the amount is small get advice on how to write down that money as it may happen again in future and the amount may not be as small so you should be well advised at all times.

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How do I pay SGA for a casual employee who retired and closed their superannuation account? | ATO Community