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ShaneRob(Initiate)Initiate
6 Aug 2024

Hello,

My question is about super payments for commission. I started to sell cars in Western Australia in February 2024. I get paid commission on the 21st of each month, while receiving a weekly wage.

When I am paid wages, I have a super payment made by my employer and on my payslip it is labelled "compulsory super 11.5%".

When I am paid commission, the super is deducted from my commission, but still labelled "compulsory super 11.5%".

My questions are the following. Is this correct? Should my employer be paying the super ON TOP OF my commission, not from it? Or should it be labelled as my contribution as I am paying it, not my employer? Is the commission classified as normal earning as they are gained from working within normal rostered hours? And is there a difference state to state, or is it a blanket Australia wide super policy?


Appreciate any help that can clarify this issue for me.

5,989 views
5 replies
5,989 views
5 replies

Most helpful response

Most helpful reply

Matt_ATO(Community Support)Community Support
15 Aug 2024

Howdy @ShaneRob,


Your employer should generally be paying the superannuation guarantee (SG) on top of your commission. And not deducting it from your commission.


If you earn $2000 in commission. Your employer should pay the superannuation (11.5% of $2000, which is $230) on top of this amount.

  • Your total earnings would then be $2230,
  • with $2000 as your commission and
  • $230 as your superannuation contribution.

On your payslip, Superannuation should be listed as a compulsory contribution made by your employer. This ensures that it is clear the super is being paid on top of your earnings and not deducted from them.


It’s also a good idea to check your employment contract or any workplace agreements to see if there are specific terms regarding superannuation contributions. If you have any concerns or need further clarification. Try discussing this with your employer.


All replies

TamaraATO(Community Support)Community Support
8 Aug 2024

Hello @ShaneRob,


Great questions!


Yes. ✔


Commissions are Ordinary time earnings (OTE) and should be worked out the same way as the rest of your normal wages.


It's absolutely an SG payment your employer will be making for you and not something you need to do yourself.


This is Nationwide, the only thing that 'may' affect how it's worked out is if you have a workplace agreement saying that.

ShaneRob(Initiate)Initiate
12 Aug 2024

Hello,


Thank you for the information, but just to clarify.......


Example: I earn $2000- commission. $206.28 deducted from my commission labelled as "compulsory super 11.5%". Leaving $1793.72. Then I earn $1160.72 after tax. ($633 tax)


Should my employer be paying the super on top of the $2000-? (approx. $230-) Not from it?

And on my payslip, should it be compulsory, or contribution so I can claim it?

Is there a document you could recommend that outlines this so I can download it?

I have not been made aware of a workplace agreement, but that's not to say there isn't one.

I would like to be armed with info because discussing it with my employer.

Most helpful reply

Matt_ATO(Community Support)Community Support
15 Aug 2024

Howdy @ShaneRob,


Your employer should generally be paying the superannuation guarantee (SG) on top of your commission. And not deducting it from your commission.


If you earn $2000 in commission. Your employer should pay the superannuation (11.5% of $2000, which is $230) on top of this amount.

  • Your total earnings would then be $2230,
  • with $2000 as your commission and
  • $230 as your superannuation contribution.

On your payslip, Superannuation should be listed as a compulsory contribution made by your employer. This ensures that it is clear the super is being paid on top of your earnings and not deducted from them.


It’s also a good idea to check your employment contract or any workplace agreements to see if there are specific terms regarding superannuation contributions. If you have any concerns or need further clarification. Try discussing this with your employer.


ShaneRob(Initiate)Initiate
21 Aug 2024

@Matt_ATO

Hello,


Big thank you to Tamara ATO & Matt ATO for their information. It looks like my employer is in for a conversation.

Can I please ask for the details of a ATO or similar official document that backs up the information given? Or a link I can follow to print the document?

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