GLOBAL PAYROLL MAGAZINE
77
Why superannuation compliance matters Superannuation underpayments have drawn increasing public scrutiny, making reputation risk management a top priority for employers. High-profile cases, such as the recent issues in Australian universities, highlight the systemic risks and financial implications of non-compliance. Although these underpayments have often stemmed from misinterpretations of legislation and misunderstandings of obligations under existing Enterprise Agreements, the public perception is simply that prominent brands have underpaid their employees. For example, an Australian university repaid a total of $10.6 million to impacted workers this year. Beyond the public scrutiny of underpayments, there are significant additional costs associated with underpaying superannuation. Employers must pay a Superannuation
Guarantee Charge (SGC), which is not tax-deductible. This charge includes:
Any superannuation guarantee shortfall that includes:
calculations on salary and wages (including any overtime).
choice liability, based on the shortfall and capped at $500.
Nominal interest of 10% per annum, accruing from the start of the relevant quarter.
An administration fee of $20 per employee, per quarter.
Finding potential solutions Superannuation management is a key but complex part of payroll compliance in Australia. While payroll systems are essential, they may struggle with the increased frequency of superannuation
payments, especially with the introduction of Payday Super.
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