Sali Jones started employment with Cost Pty Ltd on 3 October 2009 and was employed for the rest of the quarter, ending 31 December 2009.
Cost Pty Ltd paid a $900 super guarantee contribution on 10 January 2010 (before the cut-off date). Cost Pty Ltd paid a further $450 super guarantee contribution on 12 February 2010. In this example, Cost Pty Ltd elected to have some of the late contribution applied as an offset.
Cost Pty Ltd offered choice of super fund to Sali and he chose Neat Superannuation Fund. However, contributions were paid to Prime Superannuation Fund (the employer's default fund) more than two months after Cost Pty Ltd received Sali's nomination. Therefore, Cost Pty Ltd did not meet its choice obligations and has to pay a choice liability for Sali.
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 you 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.
Since B does not equal C Cost Pty Ltd has a choice liability for Sali.
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)
Step 4: Do you want to claim a late payment offset for this employee?
Q1Have you paid and had accepted any money into your employee's fund after the cut-off date for the quarter?
Q2 Has an original SCG assessment been made by the ATO for this period?
Q3 Was the late payment for this employee received by the fund before the original SGC assessment was made for this period?
Q4 Do you want to make a late payment election for this employee?
Step 5: Employee late payment offset election amount
What is the total of late payments?
Cost Pty Ltd has chosen to elect $300 of the late payment of $450 to be applied as an offset. The late payment election amount for Sali is $300.
The amount at question 20 (label N) cannot be greater than the employee's subtotal amount from step 3 (label J).
Write this amount at question 20 (label N) on the statement for Sali.
Employee's late payment offset election amount
Step 6: Transferring employee information
Transfer the amounts at labels H, I, J and N to section C on the statement for this employee. If label I equals 0 for this employee, answer 'Yes' at question 16 of the statement, otherwise answer 'No'.
You will also need to include your answers from step 4 at question 19 of the statement.
End of example