Not your normal Super Annuation Pickle

[happyhosefitter]

Hi, I recently found out that my employer had not being paying Super contributions despite my payslips showing that they had been topping up my salary since I started my employment 7 months ago. When I asked them for my Super membership number they could not supply it and I was later informed that there had been an "oversight" and my Super had not even been set up. They then quickly set me up a default company Super (I've signed nothing as of yet) and said they would fund my "Newly" set up account with the amounts owing me from the previous tax quarters. Now I may be wrong but I'm not sure they're allowed to do this as I was under the impression the ATO investigate then would get my funds and pay it in to my Super plus any interest......but...... in theory my payments are not late due to me not actually being a member of a Super until very recently.....but they have being "topping up since August". Its a bit of an almighty mess and the ATO weren't sure and advised I report it after Feb 28th. My main concern is where do I stand in all this and what would be the best course of action or has anyone else experienced this?

[nicolac34]

As long as you get it in the end I'm not sure there is anything you can do - especially if you still work for the company and want to maintain a decent working relationship! My OH still hasn't had any super paid from his previous employer (worked there from March - Sept last year) but won't inform the ATO until he's another job and doesn't need a reference!

[Guest pommybob]

It's your responsibility to set up a fund for your Super payments to be paid into, not your employer.

An employer cannot legally advise you which fund to use. It's your pension, so it's your decision.

My advice is that you go for a fund that you are comfortable with (there's lots advertised on the TV). I've gone for a safe fund with a bank which gives me a guaranteed annual return, but there are literally hundreds out there and it depends on your financial prowess.

Set up your fund and then let your employer know which fund, BSB number and account number that you have set up and they should do the rest. It's important to give them your TFN number and proof of residency when you register.

Also, an empolyer doesn't have to credit the fund on a regular basis and can credit the Super Fund periodically and you may see that there are discrepencies between what you think you should have in there and what you actually do. However, it should equal itself out over a period of time.

Hope this helps?

[happyhosefitter]

Ah therein lies the issue. I opted for the Super on offer when I started and confirmed this by signing a form so I thought it had been opened. However, like you I was going to move my super to one with my bank it become apparent that they hadn't even set it up but my contributions, according to my wage slips were going "somewhere". Now they have opened my Super and have paid the previous owing quarters late due to it never being open in the first place. When I spoke to the ATO they advised me to wait until the end of the next quarter for my next payment. I asked for the reason and they said they would like to ensure that the appropriate amounts have been paid with interest owing on the account, plus they also see it as the company is gaining an unfair advantage against its competitors. I'm sitting on it at the moment though.

[Guest pommybob]

Ah therein lies the issue. I opted for the Super on offer when I started and confirmed this by signing a form so I thought it had been opened. However, like you I was going to move my super to one with my bank it become apparent that they hadn't even set it up but my contributions, according to my wage slips were going "somewhere". Now they have opened my Super and have paid the previous owing quarters late due to it never being open in the first place. When I spoke to the ATO they advised me to wait until the end of the next quarter for my next payment. I asked for the reason and they said they would like to ensure that the appropriate amounts have been paid with interest owing on the account, plus they also see it as the company is gaining an unfair advantage against its competitors. I'm sitting on it at the moment though.

 

Are you sorted now?

[John Goldie]

Guys the rules are clear . It is the Employers responsibility to contribute SG amounts at least quarterly . If this has not happened you can report it to the ATO . They will collect outstanding amount (+penalty) and give the employee a credit to the super fund of their choice . As mentioned , this may not be the best course of action if it was a legitimate oversight and you wish to maintain a good relationship . The default Superfund legislation changes on the 1st July when FOFA comes into effect with "MySuper" . If in doubt , ask a financial planner .

[happyhosefitter]

The account has been created and the amounts have been paid in. So far so good as they say. I suppose the post stand as a warning to others to check these sorts of things regular. It certainly does put you in an awkward position for something that is an employers responsibility.