In this week’s Workplace Bulletin:
- Payments in lieu of notice now attract a superannuation guarantee charge!
- Quick Tip of the Week: How to get more information about superannuation
- Workplace Helpdesk Q and A: Rehiring after a redundancy
- Workplace Wackies: Essential additions to the workplace vocabulary
Dear Reader,
Spring has sprung! And change is certainly still in the air in the world of employment law.
Here’s a new ruling you may not have known about…
In the past, payments made in lieu of notice did not attract a superannuation guarantee charge (SGC). Now, they do!
What is SGC?
SGC is a quarterly charge that the federal government will impose on you if you fail to contribute sufficient superannuation on behalf of your employees.
The minimum level of superannuation (often known as SGC contributions) is 9% of an employee’s earnings base. (On 1 July 2008, the earnings base was standardised to mean an employee’s “ordinary time earnings” or OTE). The requirement to contribute 9% superannuation only applies to a maximum limit of earnings (in 2009-2010 this limit is $40,170 in a quarter).
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