Money
Issue No. 34 - April/May 2007
Super update of contribution rules
Since September 2006, the new record-keeping and payslip requirements have applied to those people you employ under WorkChoices with penalties to apply for non-compliance from 27 March 2007.
If you make super contributions for the benefit of your employees you should include the following details on their payslips:
•The amount and type of each contribution the employee makes.
•The amount and type of each contribution you make during the pay period.
•The name of the fund you make the contributions to.
Note: You should have all deductions authorised in writing by the employee.
You must retain a time and wages record for each employee for at least seven years. The records must be easily understood and retrievable.
Employees and former employees may access their own records while authorised persons (such as government inspectors) must be given reasonable assistance to inspect the records - otherwise penalties may apply.
Super Guarantee Charge
SG Elections: Individuals who have accumulated super benefits in excess of their Reasonable Benefit Limits have been able to make an irrevocable election not to receive SG contributions from their employer. Despite the removal of RBL from I July 2007, the Government will not allow these elections to be revoked. But if the employee moves to a new employer the election will no longer apply and SG contributions can be received.
Employment contracts: If an employee has simultaneous employment contracts with one employer, that employer has SG obligations under both contracts.
Late Payments: If an employer fails to pay SG contributions to the relevant super fund by the due date (28th day of month following quarter end), they can pay the contributions to the fund by the 28th day of the second month and have these contributions credited for SG calculation purposes. Thus, the need to pay the contributions twice is removed.
The employer will still ne...
