The company I used to work for didn't pay my wages and super correctly until Feb/2025. They would pay the ordinary pay rate on the whole 10hrs/d without paying over-time on the extra 2hrs. Instead, They would pay Super on the whole 10hrs while they only would have to pay on 8hrs. Now, they are trying to correct those, but they paid me 'unpaid over-time minus super over-paid'. which means 15%tax which was taken when they paid my Super hasn't been considered. Basically I'm copping this loss. Do I have to accept this loss? Another question is that Isn't there any better way of correcting this problem? i.e. They pay me "under-paid wages" as is, and they correct Super directly with Super institutes.
This problem isn't ATO related, however, the way to correct this is:
The employer should pay the underpaid wages in full, including:
- Overtime
- Leave accrual adjustments (if applicable)
- Super recalculated correctly on the ordinary hours.
Super adjustments should be handled through the super fund, not by wage offset.
- The employer can contact the fund and request a correction for overpaid contributions, which may result in a credit on their future super payments.
- You, as the employee, shouldn’t bear any tax or accounting impact of that.
If the company insists on offsetting, they must gross-up the super correction to reflect the 15% tax already withheld - otherwise, you will be unfairly disadvantaged.
All replies
This problem isn't ATO related, however, the way to correct this is:
The employer should pay the underpaid wages in full, including:
- Overtime
- Leave accrual adjustments (if applicable)
- Super recalculated correctly on the ordinary hours.
Super adjustments should be handled through the super fund, not by wage offset.
- The employer can contact the fund and request a correction for overpaid contributions, which may result in a credit on their future super payments.
- You, as the employee, shouldn’t bear any tax or accounting impact of that.
If the company insists on offsetting, they must gross-up the super correction to reflect the 15% tax already withheld - otherwise, you will be unfairly disadvantaged.
Thank you very much! I really appreciate it.
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