Extra super contributions?

Some employers encourage top up by increasing the employer amount if the employee also contributes eg ADF members. One major bank now makes extra super contributions for female staff on parental leave that is above the 9.5% too.

 

The limit yearly is 25k contribution. What tax rate do I pay on the additional 5k if I contribute 30k yearly? Thanks.

 

Marginal tax rate.

 

Or contribute as non-concessional?

 

Just a reminder peeps, that there is super on your bonus too
I forgot and now will be over the 25K cap for contributions =( come June

 

Super is only payable on Ordinary Times Earnings AFAIK. A bonus is not OTE in some instances.

Checklist: salary or wages and ordinary time earnings

 

This is a conversation we are about to have with my wife's employer as they have never paid her super on bonuses, yet it seems legally the only time they cannot is if the bonus is associated with overtime. Her bonuses have been ex-gratia as thanks for going over and above in busy times. Are we right that she should have been paid super?

 

Unless she is a high income earner :- Key superannuation rates and thresholds

 

She is not a high earner by any means! So - going back through her payslips, they have failed to pay her super on bonuses since she started there in 2014. Several hundred dollars owed. Let's see what they have to say tomorrow.

 

The good news if at 95 you pee standing up and are able to maintain aim....then this is the highlight of your day so forced super distributions is not really something you would be worried about.

 

It's true!

 

Especially if you are female!

 

...and there goes the neighbourhood!

 

Dont forget that the employer is obliged to pay the SGC shortfall through the ATO. That includes interest !!! Dont accept them merely paying the arrears.

In the event they arent seeking to co-operate a Fair Work application AND also one with the ATO will encourage them. Most employers wont want either agency making "enquiries"

 

Is it possible to make these applications anonymously? My wife is concerned about recriminations, such as never being given a bonus again!

 

Yes. Fair Work wander in (they have rights to enter premises and obtain information) and review all the payroll compliance issues. They wont let on they are also seeking specific evidence eg your wife.

7-11 and Domino's + others got caught out this way. A few employees contacted Fair Work who started a full compliance review and it went downhill from there. They look at everything. However the ATO just specifically look at a few issues.

Just make sure you wife tells them that her confidentiality is important. They generally do. They dig for all the dirt. ATO does much the same when they get tips. They dont tell anyone why there are really there but eventually they do compare when they have been told.

 

That’s your advice for someone employed 5 years and short a few hundred in super. Nuclear option much?

What’s wrong with you people? What happened to sit down with the boss and have a chat about the situation next time a bonus is paid.

 

My wife went to speak to the payroll clerk today and was told that super isn't paid on bonuses and she ticks the box on the payroll application to say super isn't payable. That particular clerk retires in one month so my wife is going to wait until after then to take any action. She works for a dysfunctional company whose owners tend to take "revenge" on employees for these sort of occasions. Should she contact Fairwork or the ATO?

 

Speak to Fairwork first. Its her choice to become informed and then make a informed decision.

 

The OP has already indicated the employer tends to be a bit difficult. And this is about past bonuses not complying with entitlements. These are part of remuneration. So we can ignore unpaid maternal leave, 18 days annual leave, refused sick leave and other privately arranged conditions imposed on workers ?

Employers should always ensure they comply to avoid penalties. Its like speeding. You can expect a fine not a cheery negotiation at the side of the road.