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)?
Q2 How much super did you pay by the cut-off date for this employee for the quarter?
Q3 How much super did you pay by the cut-off date to the employee's chosen fund for the quarter?
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?
Q5 What is the employee's earnings base for the quarter, limited to the maximum contribution base?
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.
Work out the percentage of super guarantee contribution paid to the employee's nominated fund by the cut-off date.
Work out the notional quarterly shortfall.
Step 3: Employee super guarantee shortfall calculations
Work out the employee's super guarantee shortfall (excluding choice).
Work out 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)
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