How to check your boss is paying your superannuation correctly

Billions of dollars of compulsory super entitlements aren’t paid by bosses annually, so here’s how to check you get what you deserve.

Mick Furniss was ripped off by a bad boss.

Changes coming soon to superannuation threaten to increase the chances of bosses failing to pay employees their entitlements.

The July 1 removal of the $450 minimum monthly threshold for compulsory employer super payments will mean hundreds of thousands more workers will be eligible to receive super – but not every boss will pay.

Super fund members are being reminded that it’s their money – just like a bank account or cash in their pockets – so they should make sure they’re getting paid.

Industry Super Australia says unpaid super affects more than one quarter of employees, and workers miss out on more than $4.5 billion annually.

It says the problem is caused by factors including poor business practices, insolvency, poor visibility because super only needs to be paid quarterly rather than in line with wages, and no tough deterrents for bad bosses.

Mick Furnisswas burnt by a bad boss, and urges super fund members to check their account.

Industry Super Australia deputy CEO Matthew Linden says unpaid super numbers “have been pretty stubborn” in recent years despite technology improvements around payrolls and increased focus on the problem.

“Younger people are most at risk – it can have a savage impact on their retirement savings because they’re missing out on compound interest as contributions are reinvested,” he says.

Mick Furniss doesn’t want other super fund members to experience financial losses like he did with a previous employer.

“I was a stonemason and was working for a bloke who wasn’t exactly the most reputable,” he says.

The employer did not pay super, tax and sometimes wages, and did not keep written records, so when Furniss contacted authorities “they wrote me off and said there’s nothing we can do to help you because there’s no paper trail to say you are owed anything”.

His advice to other fund members? “Keep track of your own accounts – own your own super”.

Aware Super group executive, member growth Steve Travis says he believes Australia’s unpaid super situation is improving but it would not be surprising to see it rise once the $450 monthly income threshold is scrapped in July and every worker becomes eligible whatever their income.

“We know about 300,000 Australians have been missing out on super because of this threshold,” he says.

“It’s important to note that the vast majority of employers are trying to do the right thing and pay their staff their full super entitlement.”

Travis says super can be complex for employers, particularly those frequently hiring new employees. He says removing the threshold should eventually reduce unpaid super because it will make the system simpler with less red tape.

Travis says people with concerns should first check that their pay slip includes super payments, which should be 10 per cent of gross pay excluding payments such as overtime.

“Log into your super account – your super fund should have an app that makes this process very easy – and go to your transaction history. Check that the super payments you’ve received match up with the amounts showing on your pay slips.”

Nest eggs would be billions of dollars bigger each year if every boss paid super correctly.

“Employers can pay super as infrequently as every three months, so you may need to crosscheck your super transaction history with older pay slips.”

Travis says the ATO has online tools to help check super payments and eligibility at www.ato.gov.au/Individuals/Super/.

Linden says while there is a risk of more unpaid super when the threshold changes, “payroll software providers will be on top of it and should make the changes”.

“Most super funds today have apps or an online presence where you can keep track – many apps have a function you can turn on to let you know a contribution was received,” he says.

Industry Super wants to see a new education campaign from the ATO, tougher punishment for bosses who don’t pay, and rules to mandate payment of super on pay day

“The law needs to be dragged forward 30 years to be updated, so super is paid at the same time as wages,” Linden says.

WHAT TO DO

1. Make sure you are eligible to receive super – you must be aged over 18 and currently earning more than $450/month from the employer.

2. Check your super fund’s last member statement to ensure you’re getting paid. Don’t just rely on your pay slip.

3. If concerned, talk to colleagues to see if they have similar issues.

4. Speak with your employer, super fund and/or union.

5. If you’re getting nowhere, contact the ATO. You can also call them on 1800 060 062 to make a confidential tip-off.

Source: Industry Super Australia

Originally published as How to check your boss is paying your superannuation correctly