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Monday, 21 April 2014

Getting Employees Superannuation Correct

Given there are currently widely publicised changes happening in the super world, it might be a good time to check that you are correctly meeting your superannuation obligations.
Each year the ATO focuses on different industries to check they're on the right track. This year they're paying particular attention to three industries:
  • hairdressing and beauty services
  • clothing retail
  • management advice and consulting services

The ATO is working with businesses to help business understand their obligations. If you're not sure you understand your obligations, you can:
  • attend a free ATO webinar that outlines the employer obligations
  • watch an ATO short video on YouTube on how to work out if they have a super obligation and how to meet that obligation
  • call 13 10 20 between 8.00am to 6.00pm (local time), Monday to Friday, except public holidays
Common mistakes made by employers include:
  1. not paying the right super contribution (the current rate is 9.25%)
  2. missing the quarterly cut-off dates (28 October, 28 January, 28 April and 28 July)
  3. not paying super for contractors if the contract is wholly or principally for the labour of that person
  4. not keeping accurate records that show:
  5. the amount of super paid and how it was calculated
  6. eligible employees have not been offered a choice of super fund
  7. how reportable employer super contributions were calculated
  8. not providing an employee's tax file number (TFN) to their super fund
  9. failing to lodge a super guarantee charge statement

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