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| Superannuation Guarantee & Back Payment of Wages |
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Superannuation Guarantee & Back Payment of Wages
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| Are you? |
- An employer who is required to make Superannuation Guarantee contributions on behalf of employees? |
| At a glance: |
- The Tax Office has recently confirmed the treatment of back payment of wages for former employees for Superannuation Guarantee purposes. |
| You should: |
- Ensure that you continue to meet your Superannuation Guarantee reporting and payment requirements.
- Contact us if you require any clarification or advice. |
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| 1. |
Employers who fail to make the superannuation guarantee contributions (SGC) by the quarterly cut off date are required to pay the superannuation guarantee charge to the Tax Office.
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| 2. |
Employers are required to make superannuation guarantee contributions on payments of salary or wages they pay to their current and former employees.
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| 3. |
Following some uncertainty, the Tax Office has recently confirmed that the law requires employers to make superannuation contributions on back payments of salary or wages to former employees.
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| 4. |
In a new guide called "Superannuation on back payment of wages", the Tax Office provides the following example:
Sue finished her employment with company Y on June 30, 2005. The company provided Sue with back pay in September 2005 for the period January 1, 2005 to June 30, 2005. The company needs to make a superannuation contribution on that back pay, payable in the quarter that corresponds to the payment.
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| 5. |
Click here for a copy of the guide or visit the ATO website at http://www.ato.gov.au |
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