A recent study conducted by Industry Super Australia and Cbus has revealed that a large number of businesses are failing to pay their employee’s superannuation entitlements. Data obtained from the ATO and ABS showed that nearly 30% of Australian employees are being short changed.
It’s estimated that a staggering $3.6 billion was under payed in the 2013-2014 tax year, which equates to around $1,489 for each employee affected.
Small businesses were the ones most likely to be under paying their employee entitlements. By law, the current Superannuation Guarantee Scheme requires employers to pay 9.5% super for every employee that is over the age of 18 and earning at least $450 per month.
The flow on affect for employees of super lost through underpayment is far reaching. Sometimes it is too late to recover funds when an employee discovers that their super, including extra voluntary contributions, has not been paid to their super fund. Even more so if a company is no longer in business.
In order to help eliminate the underpayment of super, there is now a push for even stricter penalties to be introduced for employers who fail to meet their obligations.
We strongly recommend that as an employer you ensure that you meet your quarterly superannuation guarantee obligations. You can read more about the super guarantee obligations here.
If you have any concerns around your super obligations, please give us a call. Don’t wait until it’s too late!