Under the new payday super rules, if an existing employee changes their super fund, but does not tell their employer and the funds are returned to the employer, is the payment deadline extended i.e. the first contribution to the new super fund must be received within 20 business days (rather than 7 business days) or does the original 7 business days apply?
G'day @kmid ๐
Extended 20 business days due date, as per the ATO Payday Super guidance ๐
Deanne
G'day @kmid ๐
Extended 20 business days due date, as per the ATO Payday Super guidance ๐
Deanne
Thank you for your help!! That is the view I share, but I have a colleague who has not read the guidance to read the same thing. They have interpreted it as follows:
Example 1- Joe is still employed with our organisation and changes super funds, Joe places in a request to payroll to notify the changes that are to be made, payroll STOP the funds from paying into their old fund. Joe now has 20 days to inform payroll of their updated fund details. Joe updates details within 13 days of their new fund, payroll release the funds in an off cycle payment and the 7 business days of SG contributions to be made count starts.
Example 2 - Joe is still employed with our organisation and changes super funds. Joe DOES NOT inform payroll of this change and payroll process payment into the fund that we have on file. The payment gets rejected and sent back to our organisation. As we did not stop paying to the old fund before payday the 7 day rule still applies. Payroll then had to make contact with Joe to get new fund details and make payment all within that 7 business day timeframe.
I.e.
Brand New Employee - 20 business day rule applies.
Existing Employee - if It's a planned switch to new fund, old fund is stopped first - 20 business day rule applies for the first time payment only.
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