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Is it illegal for my employer to not pay super?

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I recently learnt that my employer hasn’t paid any super contributions to my nominated account for the past year! I don’t want to rock the boat and I know the company is struggling, but I thought they had to pay my super?

You’re absolutely right! Your boss is supposed to pay nine per cent of your gross salary into your super account. Your boss is breaking the law and would be in a lot of trouble with the tax office. There are penalties imposed by the tax office and the late contributions are no longer tax deductions for the employer.

By the way, the cost to you isn’t only the money your boss has not put into your super fund. There’s the increased value on those contributions from the investments your super fund makes.

Obviously, if you don’t want to cause a problem with your boss so that you can keep your job, you have to be aware that it’s costing you. When you eventually leave, your employer’s liability to you remains but if he goes broke you might find he won’t have the money to make the payments. You’re really in a tricky position but it might still pay to have a meeting with your boss and ask if there’s anything wrong? When he asks why, just say that you have noticed that your super has not gone in. You could say that you thought it might have been an oversight, and by the way, it might be.

That’s why bringing the issue to your boss’s attention makes sense. If you get bad treatment after raising the issue, just go the tax office and let your boss deal with those suckers!

For advice you can trust book a complimentary first appointment with Switzer Financial Services today.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

Published on: Wednesday, September 07, 2011

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