Or are they obligated to? No, well that’s the technical answer when it comes to an employee making salary sacrifice superannuation contributions……
As the end of this financial year is approaching, we have noticed that multiple clients that have salary sacrificed monies into superannuation have not had the actual funds turn up in their accounts to date.
Where is the money you may ask? It would be reasonable to assume that if an employer can pay your salary on time, why can they pay your salary sacrifice superannuation contributions on time? Same concept right?
Unlike Superannuation Guarantee (i.e. compulsory super contributions at a rate of 9.25% p.a.), an employer is not obliged to make the actual payment 28 days after each quarter (for example, the quarter relating to1 Jan-31 March, the due date is the 28th April) as per the act the governs Superannuation Guarantee.
Due to potential employer cashflow, working capital or other internal business issues, we have found that some employers are sitting on employees salary sacrificed contributions for extended periods of time throughout a financial year prior to making the contribution on June 30.
If you are concerned this is occurring within your circumstances, I advise you to bring it to the immediate attention of your employer to discuss the ramifications such as a loss of earnings (or savings depending on investment market conditions) and agree to a timeframe of future contributions. There is not much else you can do in light of relevant legislation except keep in constant communication with the payroll division of your employer to ensure the contributions timely payment.
If you believe this may be happening to you, please call the office to discuss a solution.