Quarterly super payments?

LRickyBobby45 on 30/10/2019 - 14:35

I have a question regarding quarterly super payments.

My employer is paying quarterly, and as noted in my super account the payment period is listed as being for 01/01/19 to 31/03/19. But as my employer pays fortnightly they are paying the super based upon the amount of payment runs within that quarter. The last payment period within that first quarter is 11/3 to 24/3.
So the extra week of work that was worked and super earned in that first quarter (25/3 to 31/3) is not being paid in that first quarter super payment, but instead is being paid in the second quarter payment.

This is the first time I've ever had am employer work this way. I've always had employers pay fortnightly, monthly or quarterly but they have always paid for all days where super was earned within the quarter, they have never carried over to the following quarter.

Is this all above board?

Financial

Comments

  • GoldenDragon888 on 30/10/2019 - 14:42
    +6

    Yes.
    Employers are only required to pay quarterly and on the money that has been paid in that period. Can’t recall the source for the second part but it appears to be consistent with other tax issues, i.e. if you used paydates similar but for June then the last week would not be included in your tax summary for that year by the next.

    https://www.ato.gov.au/business/super-for-employers/paying-s…

    Edit: I am not a tax account so take this with a grain of salt.

  • iforgotmysocks on 30/10/2019 - 14:43
    +2

    What did your employer say when you pointed this out to them?

    • Nugs on 30/10/2019 - 14:47
      +6

      ask ozbargain of course
      .

    • spackbace on 31/10/2019 - 02:33
      +2

      Phone is fine

  • spiff on 30/10/2019 - 14:45
    +2

    Not sure what the regulations are around this but what your employer is doing sounds reasonable. They're paying super on the payroll runs actually paid. Just like how they would only pay payroll tax and PAYGW based on actually salary paid, not accrued.

    • Telcius on 31/10/2019 - 11:23
      +1

      Not only reasonable it's correct - payroll liabilities are accrued on a cash basis, i.e on pay day. I doubt any employer you've worked for has done it any other way…

  • Skramit on 30/10/2019 - 14:47
    +1

    I've seen some ads on telly sponsored by Super Funds wanting super paid at the same time as the salary instead of the quarterly or monthly in arrears nonsense. I would be in support this, if it became an election issue.

    • plmko on 30/10/2019 - 14:57

      Of course the superfunds would want that, it just means they can get access to your money earlier and start charging fees.

      • dcep on 30/10/2019 - 15:01

        which is better?

        1. employer holding it

        2. invested in your super

        • plmko on 30/10/2019 - 15:30
          +6

          3 . The one that doesn't push small businesses to the brink with more administrative burden

          • [Deactivated] on 30/10/2019 - 16:42
            -2

            @plmko: Paying it at the same time would be less administrative burden, more cashflow burden though.

        • Seraphin7 on 30/10/2019 - 16:32
          +1

          Depends on the direction of the markets during the relevant time.

          Seriously though, I would support moving to a requirement for super payments to be made at the same time as the salary is paid (weekly, fortnightly, monthly … whatever the situation is for each employer).

    • Fysh on 30/10/2019 - 15:15

      unfortunately from a employee perspective and working with businesses that have gone bust or just plain scamming people entitlements I would rather this too.

  • [Deactivated] on 30/10/2019 - 14:53
    +2

    Super for the quarter only has to be paid four weeks after the quarter ends. Some employers will pay it monthly, but you could be waiting as much as 16 weeks in the worst case and it's still all above board.

    So you can work from 01/01/19 to 31/03/19 and ALL the super for that period isn't required to be paid until 28th April 2019. A lot of companies with a monthly pay cycle will just pay that 4 weeks later for each month.

    Worth noting if you're a higher income earner or making concessional contributions, the cap is based on when the super fund receives the money too, not when you earned it.

  • ode1online on 30/10/2019 - 15:32

    Hi , welcome to the forum

    definitely speak about any concerns you have with your employer but this site has ENQUIRES information at the bottom of the website Id say its worth a look.

    https://ablis.business.gov.au/service/ag/employer-requiremen…

  • TRAVELO on 30/10/2019 - 15:48

    Normal business practice. Company's earn interest on the cash in the bank. You don't get any interest. They only abide what is exactly in law. :)

  • RickyBobby45 on 30/10/2019 - 20:35

    Awesome thank you all so much for the comments. Seems like its all above board, although definitely not ideal and not in the employee's favour (when is anything these days?)

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