An important reminder for employers
We remind employers that it’s important to keep employees’ contributions up to date and that SG contributions are legally required to be made on a quarterly basis.
Loss of employee's insurance cover
Quite apart from the legal ramifications, please be aware that if an employee doesn’t receive an SG contribution for a period of 12 months, their Total and Permanent Disablement (TPD) insurance cover with REI Super will lapse. This means you could be liable in the event of an employee claiming TPD when they didn’t have cover.
Principals are responsible
Remember that the ultimate responsibility for timely and accurate payment of SG contributions rests with the principal rather than with the payroll clerk at your business. The ATO conducts regular audits of businesses to check these sorts of details, so don’t let your super contributions slip behind. It is illegal for a business to use its employees’ super entitlements as working capital.
Please call us on 1300 13 44 33 if you need more information.