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Superannuation obligations

The ATO has also publicized their intention to investigate over 17,500 employee complaints about unpaid superannuation over the course of this financial year.

Employers will be carefully scrutinized in an attempt to eliminate the practice of keeping employee wages off the books through cash payments. Businesses that incorrectly treat employees as freelancers or contractors, in order to avoid paying superannuation behalf of their employees, will also be targeted and could face severe fines or even legal prosecution.

Any business or employer with a history of non-compliance regarding superannuation and tax withholding will be closely monitored, and may be subjected to audit or assessment, as will all employers who had a complaint made against them regarding unpaid superannuation.

The publishing of over 100 different small business benchmarks will also help to promote awareness of how businesses are expected to perform in relation to the rest of their industry, making it more difficult for businesses using cash payments to remain undetected.

Businesses operating outside of these benchmarks who do not voluntarily disclose any discrepancies in their financial reporting will be more likely to be subjected to a full audit this financial year.

Posted on 8 July '10 by , under General News.

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