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Re: Superannuation on long service leave

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I am taking out long service leave but I am still employed with employer ( anotherwords the long service leave is not paid on termination ) , is there any superannuation payable by employer on the long service leave ? There is nothing on the ATO website that specifically mentions superannuation on long service leave so I wasn't sure and neither was the employer .

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ATO Certified

Devotee Registered Tax Practitioner

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From ATO web site:

 

Amounts paid to employees while on leave.Payment typeWithhold tax?Pay super?

Annual leave, sick leave or long service leave

Yes

Yes

Parental leave (maternity, paternity, adoption)

Yes

No

Ancillary leave (jury duty, defence force reserves)

Yes

No

Workers’ compensation (returned to work)

Yes

Yes

Workers’ compensation (not working)

Yes

No

Termination payments

Amounts paid to employees upon termination of employment.Payment typeWithhold tax?Pay super?

Annual leave, sick leave or long service leave

Yes

No

Parental leave (maternity, paternity, adoption)

Yes

No

Ancillary leave (jury duty, defence force reserves)

Yes

No

Workers’ compensation (returned to work)

Yes

Yes

Workers’ compensation (not working)

Yes

No

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ATO Certified

Devotee Registered Tax Practitioner

Replies 2

From ATO web site:

 

Amounts paid to employees while on leave.Payment typeWithhold tax?Pay super?

Annual leave, sick leave or long service leave

Yes

Yes

Parental leave (maternity, paternity, adoption)

Yes

No

Ancillary leave (jury duty, defence force reserves)

Yes

No

Workers’ compensation (returned to work)

Yes

Yes

Workers’ compensation (not working)

Yes

No

Termination payments

Amounts paid to employees upon termination of employment.Payment typeWithhold tax?Pay super?

Annual leave, sick leave or long service leave

Yes

No

Parental leave (maternity, paternity, adoption)

Yes

No

Ancillary leave (jury duty, defence force reserves)

Yes

No

Workers’ compensation (returned to work)

Yes

Yes

Workers’ compensation (not working)

Yes

No

Anonymous

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@Bruce4Tax 

 

Im leaving this community and would like to thank you for the discussions that we have had over a long time period.

 

When it gets a bit warmer you may be hearing from me as I would be interested in attending one of those Thursday afternoon meetings you mentioned a while back.

 

Until then all the best Bruce and thanks again.

Anonymous

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xxx

ATO Certified

TaxTime Support

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Hi @mikon

 

Welcome to our Community.

 

@Bruce4Tax is correct. If you would like to see where that information came from, check out the work out tax to withhold and super to pay page on our website.

 

Super guarantee (SG) is 9.5% of their ordinary time earnings (OTE). OTE is usually the amount that the employee earns for their ordinary hours of work. It includes many types of payments but not all. In some cases, it depends on why the payment is being made as to whether it is considered OTE.

 

When an employee is being paid annual or long service leave while employed, it is considered OTE and is included in the SG calculation. In other words, the employee takes some paid time off then returns to work afterwards. From what you have said, this would appear to be applicable to you.

 

It is also OTE when the employee cashes out some of their accrued leave (some workplaces allow this) but remains employed.

 

When an employee is being paid their unused accrued annual or long service leave on termination, it isn't considered OTE. Of course, this isn't applicable to your scenario but demonstrates when the payment of annual or long service leave isn't OTE.

 

Your employer can read more about it by having a look at the how much to pay page. If they really want to, they can also check out Superannuation Guarantee Ruling - SGR 2009/2 which provides a more in depth explanation.

 

Hope this helps.

 

Thanks,

 

ChrisR

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