• You paid some super before the cut-off date but at least some contributions were paid to the wrong fund

    Example

    Mitchell Maple started employment with Cost Pty Ltd on 3 October 2009 and was employed for the rest of the quarter ended 31 December 2009.

    Cost Pty Ltd offered a choice of super fund to Mitchell and he chose Neat Superannuation Fund. Cost Pty Ltd paid $900 in super contributions to Prime Superannuation Fund (the employer's default fund) before the cut-off date, but more than two months after Cost Pty Ltd received Mitchell's nomination. Cost Pty Ltd did not meet its super choice obligation and has a choice liability.

    Step 1 (A): Employee quarterly information

    Q1 How much super have you paid for this employee for the quarter (include on time and late payments)?

    Label A on the worksheet

    Q2 How much super did you pay by the cut-off date for this employee for the quarter?

    Label B on the worksheet

    Q3 How much super did you pay by the cut-off date to the employee's chosen fund for the quarter?

    Label C on the worksheet

    Do not include any contributions made to the employee's chosen fund where you charged your employee a direct cost for making contributions to the fund.

    Make sure you include any contributions you made within two months of your employee giving you details of their chosen fund, even if you paid them to a fund other than the employee's chosen fund.

    Q4 What is the employee's total salary or wages for the quarter, limited to the maximum contribution base?

    Label D on the worksheet

    Q5 What is the employee's earnings base for the quarter, limited to the maximum contribution base?

    Label E on the worksheet

    Step 1 (B): Simple calculation of employee super guarantee shortfall

    For this example step 1 (B) is not required. Go to step 2.

    Step 2: Employee preparation calculations

    Work out the percentage of super guarantee contribution paid by the cut-off date.

    The percentage of super guarantee contribution paid by the cut-off date

    Work out the percentage of super guarantee contribution paid to the employee's nominated fund by the cut-off date.

    The percentage of super guarantee contribution paid by the cut-off date

    Work out the notional quarterly shortfall.

    The notional quarterly shortfall

    Step 3: Employee super guarantee shortfall calculations

    Work out the employee's super guarantee shortfall (excluding choice).

    The employee's super guarantee shortfall (excluding choice)

    Work out the choice liability for this employee.

    The choice liability for this employee

    The choice liability for this employee

    Choice liability is limited to $500 per notice period per employee, so label I cannot be greater than $500.

    Employee's subtotal (H + I)

    Label J on the worksheet

    Steps 4 and 5: are not relevant to this example since there were no late payments

    Step 6: Transferring employee information

    Transfer the amounts at H, I, and J to section C of the statement for this employee. If label I equals 0 for this employee, answer 'Yes' at question 16 of the statement, otherwise answer 'No'.

    End of example
    Last modified: 13 Sep 2016QC 17278