Ability for employees with multiple employers to opt out of different funds
How do you manage employees that have more than one employer when it comes to the superannuation guarantee?
The ATO has released details of how the superannuation guarantee opt-out process will work for employees with multiple employers.
The opt-out process is for those that are likely to exceed their concessional contributions cap for the financial year because of the requirement for every employer to pay SG. For those opting out, at least one employer will need to continue to pay SG for the employee. Protections are in place to ensure that the opt out process is appropriate.
From 16 October 2019, individuals will be able to download the employer shortfall exemption certificates from the ATO website. These applications must be submitted at least 60 days before the start of the quarter for which the exemption is sought.
An extension is in place for the lodgment period for the quarter commencing 1 January 2020 only. The Commissioner will accept applications lodged on or before 18 November 2019.
The certificate completed by the individual (not the employer) will need to specify:
- Which employers the exemption certificate will apply to
- The quarter(s) in the financial year for which the exemption is sought.
Exemption certificates may be issued for multiple quarters within a financial year but cannot cover more than one financial year.
If the ATO provides a certificate, they will advise the employee and the employer that the certificate has been issued. The employer is under no obligation to accept the certificate.
The certificate does not change the employer's obligations under a workplace award or agreement, or an employer's agreement with their super fund.
Before applying to opt-out, individuals will need to speak to their employer to clarify their remuneration package without SG – generally as additional remuneration or other benefits.
Superannuation can be remarkably tricky so it is worth discussing the impacts of these changes with your accountant. Speak to us on 02 9957 4033
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.