Paying your employees' Superannuation twice -- by mistake

QUESTION: One of my clients owns a health club. Due to recent staff changes, they accidentally paid their employee superannuation contributions late. The ATO demanded they pay the whole amount again with interest. This seems unfair to say the least. Is there any recourse for my client?

ANSWER: Your client has had to pay what is known as the Superannuation Guarantee Charge (SG). When employers do not pay their employees superannuation contributions to their fund on time they become liable for the SG charge. The SG charge includes the amount of the original contribution plus interest and an administration fee which is paid directly to the ATO. The SG charge guarantees that employee's super contributions are met by the employer. However, the SG charge is payable even if the employer paid the full amount, albeit late, to the super fund. This means that your client has paid the contributions twice and is understandably not very happy about it.

The good news however (although too late to help your client) is that the double SG charge is to be abolished so that payments that are paid late will not have to be paid again to the ATO. Your employees, however, will be entitled to interest to compensate them for the late payment.

Where does that leave your client? Looking back over the last 14 years Brett Davies Lawyers www.taxlawyers.com.au has an almost 100% track record in getting the double payment to the Super fund back -- usually without the need of starting a legal action. Our solicitors are happy to discuss.

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• employment
• superannuation
• contract
• SMSF
• self
• managed
• super
• fund
• ATO
• compensation
• LawCentral
• Brett
• Davies
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[Zakynthos]

very interesting