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Re: Employer compulsory super

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I have discovered there are no ATO checks that an employer is paying a full time employee the 9.5% Super. If you complain to the company about never receiving it into your nominated fund, you risk being fired! I am stunned, even though your Tax/ pay statement shows they are paying it, the ATO do not check it is paid. My son has given all his account super details to his employer when he started in Dec 16, nothing has been paid, despite him questioning why...he has had to give up. I am shocked by this. No wonder the ATO,has so much fraud! 

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LJB
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Do not give up. The ATO do not receive a super report as far as I know, unless the employer is using the ATO clearing house for super, and they don't have to. If you are getting no action from the employer, you need to alert the superfund, and you can also report it to the tax office. There are heavy penalties for not paying Super as well as a surcharge. The October to December Super was due to be paid by 28 January, and Super for January to March must be paid by 28 April, April to June by 28 July in most circumstances. If your son is earning $450 or more a month (most awards), or if he is under 18 and he is working 30 hours or more a week, he is entitled to superannuation guantantee contribution by the employer. All the best. 

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LJB
Enthusiast

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Do not give up. The ATO do not receive a super report as far as I know, unless the employer is using the ATO clearing house for super, and they don't have to. If you are getting no action from the employer, you need to alert the superfund, and you can also report it to the tax office. There are heavy penalties for not paying Super as well as a surcharge. The October to December Super was due to be paid by 28 January, and Super for January to March must be paid by 28 April, April to June by 28 July in most circumstances. If your son is earning $450 or more a month (most awards), or if he is under 18 and he is working 30 hours or more a week, he is entitled to superannuation guantantee contribution by the employer. All the best. 

Devotee Registered Tax Practitioner

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I believe that the ATO should be using SuperStream more efficiently.

 

The Super Fund could be obliged by the ATO to first report to the employer and then the ATO if SG is not paid.

 

The employee would need to report to the ATO if the employer is not registered with a Super Fund as a employer.

 

Hope this helps.

 

Duncan Smith
Business Advice + Tax

 

 

ATO Certified

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Hi @Lizday

 

I'm sorry to hear about your son's situation.  @LJB response is essentially right.  The first thing to determine is if your son is eligible to receive employer contributions, basically he is eligible if:

  • 18 years old or over and are paid at least $450 (before tax) in salary or wages in a calendar month
  • under 18 years old, work more than 30 hours per week and are paid at least $450 in salary or wages (before tax) in a calendar month.

If your son is defintely eligible for the super payments and his super fund is not receiving these employer contirbutions your son can report the employer to the ATO for investigation.  Please read this information explaining the steps for Unpaid Super.

 

Deputy Commissioner for Superannuation James O’Halloran has recently spoken on how the ATO deals with unpaid superannuation (see speech here)  and with the take up of SuperStream and Single Touch Payroll the ATO has indicated that they will be in a position to take a more proactive approach as they receive the data. 

 

In the meantime I'd suggest following the advise on the page I've linked above and issuing a non-payment compliant if necessary.

 

Please note;
This is my personal view; I’m an ATO employee who chooses to help out here in my own time.

 

I'm new

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unfortunately  when a Super Audit is in action, the ATO guidelines permit the remission of penalties...

.....   and this is being done in what I would consider severe 'continual' breaches of not paying Super...

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in fact super can be paid very late to the Super Fund - without any penalty to the super fund 

..... ( I do not consider the admin fee @ $20 per employee on the SGC statement to be any disincentive... 

this can occur when the 'Late Payment Offset'  is elected by the employer -  this will offset the amount payable when the SGC statement is lodged ..... IF Lodged at all

the end result is that  ' no late payment interest' may be passed on to the super fund

.

therefore, the employee is in a 'no win  situation' because he may not receive any 'interest earnings' for the late payment

..

let's hope one touch payroll can help......

 

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