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Superannuation paid for commission

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Hi there,

I have a friend who works in the tourism industry in QLD. She is a contractor but i believe she is and has been an employee for superannuation purposes for the past 2 years . As she only works for the one company.

The company has just told her that they will in fact start to pay superannuation for her. But they have told her it will only be on her base wage. Her base wage is 120 dollars but she makes more than that with commission for whatever sales she makes. She gets from 0 to 150 dollars in commission on top of her base wage daily. Plus more on really good days. I am wondering if they should be paying her super on the commission as well.

Also, because she has worked for the same company for a couple of years now. Is she entitled to superannuation for those previous 2 years.

Thanks,
Chjamack
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ATO Certified Response

Former Community Support

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Hi @Chjamack,

 

Welcome to the Community.

 

Generally speaking, if an employee is paid $450 or more in a calendar month they’re entitled to superannuation guarantee (SG).  There are a few exceptions to this rule – you can find the list of employees who aren't eligible for super on our website.

 

SG is paid on an employee’s ordinary time earnings (OTE).  Generally, OTE is what someone earns for their ordinary hours of work. This includes commissions.

 

If your friend is eligible for super and their employer hasn’t met their SG obligations, then we’d suggest your friend speak to the employer first.

 

If they’re unable to resolve the issue, then they can lodge an unpaid super enquiry.

 

Thanks, NicM.

1 REPLY 1

Most helpful response

ATO Certified Response

Former Community Support

Replies 0

Hi @Chjamack,

 

Welcome to the Community.

 

Generally speaking, if an employee is paid $450 or more in a calendar month they’re entitled to superannuation guarantee (SG).  There are a few exceptions to this rule – you can find the list of employees who aren't eligible for super on our website.

 

SG is paid on an employee’s ordinary time earnings (OTE).  Generally, OTE is what someone earns for their ordinary hours of work. This includes commissions.

 

If your friend is eligible for super and their employer hasn’t met their SG obligations, then we’d suggest your friend speak to the employer first.

 

If they’re unable to resolve the issue, then they can lodge an unpaid super enquiry.

 

Thanks, NicM.