I had no idea where my lost super was or the names of the funds. I just new it was scattered everywhere and I should definitely have more than $3,000 in my super. Australian Super Finder found all 7 of my funds and now my balance is almost $50,000. Thank you so much for getting my super back on track. ? Leonie, Thomastown VIC

Super Facts and Tips

Super Guarantee Obligations

As part of its compliance activities in progress, the ATO (Australian Taxation Office) goes on with its audit analysis of compliance with the employers’ Super Guarantee obligations. So, it is practical to briefly reconsider the Super Guarantee facing employers as well as to study the consequences of non-compliance.

Super Guarantee Contributions

Super Guarantee contributions are obligated to be paid by all employers so as to make certain that every individual worker receives a prearranged minimum amount of super support regularly. The prearranged minimum amount increased from 9.25% to 9.5% from July 1, 2014. The prearranged minimum amount of Super Guarantee will stay at 9.5% until June 30, 2021, and will increase by 0.5% annually until it reaches 12% in 2025 (income year).

The Super Guarantee amount paid by an employer for each of his or her employees is mostly determined according to the employee’s earnings base. An employee’s earnings base his or her OTE (Ordinary Times Earnings). OTE consists of, but isn’t limited to, the employee’s base pay, commissions or shift loadings collected by the employee, or salary for sick or annual leave taken. On the other hand, an employee could receive various payments that are not included from OTE. This system takes in lump sum payments to workers on employment termination for unused yearly leave as well as unused long-service leave.

The “maximum contribution base” is $49,430 every quarter for 2014-2015 (raised to $50,810 for 2015-2016). An employer isn’t required to offer the minimum super guarantee support instead of that part of the OTE of an employee above the maximum contribution base.

It is vital to bear in mind that the super guarantee legislation has a comprehensive definition of who’s deemed an employee and groups with independent contractors will perhaps be affected. Additional, different award engagements may give rise to further super obligations.

If you aren’t capturing the correct employee-contractor facts, you could have a super guarantee loss, and this could trigger a full ATO employer obligations audit.

Consequences of Non-Compliance

Employers found to have been unsuccessful to offer the prearranged minimum standards of super support intended for their workforces will be answerable to the SGC (Superannuation Guarantee Charge). The SGC penalty broadly involves the loss between the minimum super support needed to be paid and what was mostly paid by the employer, as well as an administrative payment and an interest amount (representing a substitute for super earnings). The superannuation guarantee loss is determined by multiplying the estimated quarterly shortfall percent by the wages or salary of the employee. In some instances, the wages or salary amount of the employee will go above that of their OTE.

If you want to know more about super guarantee contributions, go to www.australiansuperfinder.com.au

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