Avoiding a fall-out from super guarantee increase A worrying amount of employers are planning to reduce take-home wages to offset the higher super guarantee, research finds.In an interview with ABC’s 7.30 for The Future of Retirement series earlier this year, Australia’s 24th Prime Minister Paul Keating, who famously introduced the compulsory employer contributions to superannuation in 1992, argued the ideal level of compulsory superannuation contributions is 15 per cent.“Particularly now, as earnings – yields from shares, yields from equities, and bond yields – have fallen so far, there’s no way a funded 9.5 per cent can give you the kind of accumulation I believe you need. So the answer is 15,” he told host Alan Kohler.While we haven’t yet reached the 15 per cent mark (except for some government employees who receive 15.4 per cent), there has been some upward movement due to recent changes announced in the recent federal budget.The mandatory superannuation contribution will increase from 9.5 to 10 per cent by 1 July, with the super guarantee continuing to climb by half a per cent each year to reach 12 per cent by 2025.As the higher compulsory superannuation rate falls on the shoulder of employers, it’s worth exploring what impact this change will have for HR and payroll teams. HRM spoke to Tracy Angwin, CEO of the Australian Payroll Association, to elucidate the significance of the super increase.Angwin says her organisation has already been fielding numerous calls from employers enquiring about how to avoid the super guarantee increase.“Throughout the pandemic small businesses have been badly impacted, so they are watching every penny,” says Angwin.“Even though legally you could have the base salary absorb the super, it’s not in the spirit of the legislation change, so I would encourage employers to reconfigure salaries so they can keep the base rate the same, and meet the 10 per cent super requirements.”Slashing take-home pay also runs the risk of harming workplace morale and culture, with the potential flow-on effect of losing valuable employees.Given the current labour shortage, a reduction in skilled migrants, and Microsoft’s recent research which revealed that more than 40 per cent of the workforce is planning to look for a new job this year, it’s imperative that organisations work to retain talent.Angwin is also concerned that organisations skirting around the super increase will negatively impact on the labour market.“We should be looking at ways to compensate people, not just now but for the future. Surely super and other benefits are a good way to do that. I think that has got more to do with attracting talent right now than it has with financial impact… In all industries, and certainly in the payroll industry, there’s a war for talent, so why would you cut salaries?”For organisations paying staff on a ‘base plus’ remuneration model (super is paid on top of salary), Mercer’s survey indicated that 62 per cent of these organisations would not offset the increased superannuation contribution by slashing employees’ take-home pay.Meanwhile, companies paying their employees under enterprise agreements or minimum pay standards will also need to pay the increased super rate on top of an employee’s wage.The cost of non-complianceFailure to comply with the super guarantee will cost your company, regardless of whether the shortfall is intentional or a genuine oversight.“Penalties apply no matter how the underpayments happen,” says Angwin.If a superannuation shortfall is found, the employer is typically required to pay the original superannuation to the ATO, along with an administration penalty.“The quarterly administration fee per employee is a set amount: $20. If you have underpaid by $2, it is a significant way to remediate super,” says Angwin.And then there’s interest calculated as a percentage of the underpayment.As HRM previously reported in 2018, “On an unpaid superannuation exposure of $1 million, the penalty could be as high as an additional $2 million and the interest could be $500,000. That’s a total exposure of $3.5 million. Directors also face personal liabilities of the unpaid superannuation (i.e. the $1 million),” Prath Balasubramaniam, principal lawyer at Macpherson Kelley, said at the time.“The kicker is that all these penalties are not deductible,” says Angwin. “We’ve just had a superannuation guarantee amnesty, so you would like to think that anyone who thought they are at risk has dealt with this, but that is not necessarily the case.”Angwin advises that organisations brush up on the changes and take the following necessary steps to ensure compliance:Review your company’s employment contracts to determine how your employees’ pay is calculated, and how to recalculate the amount of super.Engage a qualified payroll consultant to conduct an audit of your organisation’s superannuation setup and calculation for each employee, which should also include a thorough review of processes. Superannuation is currently considered paid once the fund receives it, as opposed to when the organisation pays it.“We have clients who have gotten into serious trouble by making payments on the 26th of the month, for example, and the money not getting into the super fund until early the next month. Then they find themselves due for penalties because of non-payment,” says Angwin. “It’s not just the set up, it’s the actual process. Just having someone check your pay codes isn’t going to ensure compliance.”Use the opportunity to make sure your business is compliant across all aspects of payroll, including award interpretation (the minimum legal amount of pay for hours worked), and leave calculations.Overhauling the $450 minimum thresholdIn another bid to boost employees’ retirement savings, the government has also announced the removal of the minimum $450 threshold, so employees who earn less than $450 per month will soon be eligible to receive compulsory super payments at the new rate.The removal of the threshold, which will likely come into effect from 1 July 2022, is estimated to help around 3 per cent of employees in Australia, mostly young, female, lower-income and part-time workers.Industries that tend to employ workers who balance multiple jobs or receive income from various sources, such as the arts and entertainment sector, may find the change to be financially burdensome.Hospitality, retail and aged care could also come under increased pressure.“If a company employs a lot of casuals or young people who [currently] might not meet the $450 minimum threshold, this change could be a financial shock,” says Angwin. “It’s a fundamental change to how super works in a payroll system.”Although the financial implications could be significant, Angwin assures the removal of the threshold won’t cause additional administrative pressure for companies who have their payroll system set up correctly.Lifting the threshold will also require companies to consider who is defined as an employee. Some workers may be independent contractors for employment purposes, but they could be classified as an employee for superannuation.The ATO provides a number of tests, and there are various technical ways to determine if a worker is an employee, but Angwin says the assumption should always be that they are, unless proven otherwise.“It’s the duck test. If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck… The best approach is to assume that they are an employee unless you can determine that they aren’t.”Put simply, superannuation will soon be widely available for all. /Public Release. This material comes from the originating organization and may be of a point-in-time nature, edited for clarity, style and length. View in full here. Why?Well, unlike many news organisations, we have no sponsors, no corporate or ideological interests. We don’t put up a paywall – we believe in free access to information of public interest. Media ownership in Australia is one of the most concentrated in the world (Learn more). Since the trend of consolidation is and has historically been upward, fewer and fewer individuals or organizations control increasing shares of the mass media in our country. According to independent assessment, about 98% of the media sector is held by three conglomerates. This tendency is not only totally unacceptable, but also to a degree frightening). Learn more hereWe endeavour to provide the community with real-time access to true unfiltered news firsthand from primary sources. It is a bumpy road with all sorties of difficulties. We can only achieve this goal together. Our website is open to any citizen journalists and organizations who want to contribute, publish high-quality insights or send media releases to improve public access to impartial information. You and we have the right to know, learn, read, hear what and how we deem appropriate.Your support is greatly appreciated. All donations are kept completely private and confidential.Thank you in advance!Tags:ABC, ATO, Australia, Australian, Australian Payroll Association, employment, enterprise agreement, federal budget, Government, legislation, Microsoft, Prime Minister, retirement, Small Business, superannuation, underpayment
Lee Swain says: Comments are closed. 1 Comment The first sentence in the article — “Women in Santa Monica make 78 cents for every dollar earned by a man, according to a report released last week by the Santa Monica Commission on the Status of Women” is misleading at best. It has zero value unless you understand that there are important reasons for this so called wage gap that are completely legitimate and are not at all prejudiced against women in general. For instance, there are many very difficult and dirty jobs that women are not as interested in as men. Picking up people’s trash and waste is a good example. Very few women are interested is that job; but, having done it, I can tell you they deserve to be paid a healthy wage for the dangerous job of moving very heavy containers within the public street and dealing with the filth and stench every single work day. On the other hand, women who make up the majority of nursing jobs in the country also have a very difficult job and deserve to be paid well. Many times they make more than their husbands. I know two of them who make more than their husbands who are engineers. The point is, the type of job people choose matters most in these statistics; but, the media never goes into any more detail than the useless headline.On the same note, I’ll share a few other interesting statistics about the status of men in America that you almost never see in the media:1. Since 1979, women in the United States have gotten almost 14 million more advanced degrees than men.2. Men in America are much more likely than women to be homeless, alcoholic or suicidal.3. There are 242 homeless men for every 100 homeless women.4. There are 200 men with alcoholism for every 100 women with alcoholism.5. There are 77 men enrolled in college for every 100 women.6. There are 73 men enrolled in grad school for every 100 women.7. There are 450 men who commit suicide for every 100 women.8. There are 212 men dying of opioid overdoses for every 100 women.My point in sharing this important information, is to make more people aware of these statistics as I know that many people incorrectly assume that men have all the advantages in society. After working in government for 40 years, it is my firm belief that many public programs and resources cater to women and children at the expense of men and fathers and consequently all of society is negatively affected. There is a DEFINITE need to address the needs of boys and young men if we are to improve society as a whole. I have always told my two grown daughters that they have no limits as to what they can accomplish with their own hard work, skills, abilities and effort as long as they are willing to put in the effort. I am also proud to say that they will both be getting Masters degrees this year. In summary, I’ve learned that life is not always fair to anyone, no matter your gender or race; but, you generally get out of life what you put into it and hard effort is usually rewarded … period! HomeBusinessWage gap between white women and women of color persists in Santa Monica, according to new report Feb. 18, 2020 at 6:00 amBusinessFeaturedNewsWage gap between white women and women of color persists in Santa Monica, according to new reportGuest Author1 year agocommission on the status of womencrimeSanta Monica CollegeSanta Monica-Malibu Unified School DistrictA report from the Commission on the Status of Women found deep economic divides between white and Asian women and black and Latina women. Teddy RosenbluthDaily Press internWomen in Santa Monica make 78 cents for every dollar earned by a man, according to a report released last week by the Santa Monica Commission on the Status of Women.This is an improvement from 2013, when women earned 72 cents for every dollar earned by men, but still slightly lower than the national average, according to recent data from the US Census Bureau. When compared to white men, women made 69 cents to every dollar.Although there has been an increase in diversity among women since 2015, the wage gap between white women and women of color persists. Full-time Latina workers made only 44 cents for every dollar earned by a man and about $30,000 less than white women annually. Asian women made about $12,000 more annually.Furthermore, while women made up a little more than half of the population in Santa Monica, they made up only 31% of the jobs in the city’s growing technology sector. However, they comprised 53% of the workforce in service occupations, such as waitressing and cleaning.Three in 10 women living in Santa Monica were born outside of the United States and the data shows a steady decline since 2000. The demographics of these women have also shifted as the percent of immigrants from Europe dropped while the percentage of Asian and Latin American immigrants increased.More than 7,000 mothers with children under 18 lived in Santa Monica, 59% of whom were employed. 95% of single mothers in Santa Monica with children under 18 were employed.Aggravated assault, a crime that disproportionately affects women, rose by 67% between 2016 and 2017 and reported rapes, of which 75% involved female victims, increased by 27%. Overall violent crime rates in Santa Monica increased 108% between 2014 and 2017, but have since decreased. In the Santa Monica-Malibu Unified School district, 8% of students reported harassment due to their actual or perceived sexual orientation.On average, women reported higher stress levels and more economic concerns than men in Santa Monica. Local women said they were concerned about increased crime, dissatisfaction with homeless services and traffic issues.Women living in the Pico and Mid-City area reported the lowest satisfaction with their lives, one of the highest rates of poverty and many paid 35% or more of their income on rent. Housing prices in the city have steadily increased, now placing the median home value at $1,170,000.Women make up 23% of the homeless population in Santa Monica. Those not living in shelters, which have approximately one bed for every three homeless individuals, live downtown.Although there was not concrete data on student homelessness, the report estimates as many as 10% students at Santa Monica College and 19% of students at Los Angeles Community College District could be homeless.Despite these hardships, some aspects of life for women have improved.The 7,900 women-owned businesses made an annual revenue of $1.26 billion, although the overall economic impact of these businesses in the city was relatively small. Only 14% of women-owned businesses in 2012 had paid employees, compared to 28% owned by men.Younger women in the city also seemed to have higher levels of formal education than older generations. 76% of women under 45 had at least a bachelor’s degree while, of the women older than 65, 57% had college degrees. Furthermore, girls in SMMUSD schools had a higher graduation than the California average and their male [email protected] :commission on the status of womencrimeSanta Monica CollegeSanta Monica-Malibu Unified School Districtshare on Facebookshare on Twittershow 1 comment Adult entertainer shoots video in Ocean Park libraryTrump to use ‘big voice’ to boost GOP on 4-day Western tripYou Might Also LikeFeaturedNewsBobadilla rejects Santa Monica City Manager positionMatthew Hall6 hours agoBriefsLos Angeles Sheriff’s deputy accused of destroying evidence of 2019 assaultAssociated Press10 hours agoNewsCouncil picks new City ManagerBrennon Dixson17 hours agoFeaturedNewsProtesting parents and Snapchat remain in disagreement over child protection policiesClara Harter17 hours agoFeaturedNewsDowntown grocery to become mixed use developmenteditor17 hours agoNewsBruised but unbowed, meme stock investors are back for moreAssociated Press17 hours ago February 18, 2020 at 3:07 PM
“We are excited to have John join our team. He has a reputation for exceptional customer service as well as a vast knowledge of the commercial vehicle industry,” said Alread. “John brings a unique background of sales, product expertise and operational management. All of these things, coupled with his strategic capabilities and customer focus brings HDA Truck Pride a tremendous enhancement to our organization.” Misken is ASE-certified in brakes and is a Certified Parts Specialist. He is a former staff sergeant in the U.S. Air Force. AdvertisementClick Here to Read MoreAdvertisement Misken joins the HDA Truck Pride team with 22 years of industry experience from both the distributor and the manufacturer sides of the business. Misken spent the past two years as regional sales manager with Marathon Brake Systems, managing the business in the commercial vehicle aftermarket, OES and transit markets covering Arizona, California, Colorado, Hawaii, New Mexico, Nevada and Utah. Prior to that, he served 6 years as district sales manager, Commercial Vehicle Group with Affinia in the WIX, Raybestos, Brakepro and Spicer divisions. Misken also has an extensive distribution background with a variety of operational, product, training and management positions with Fast Undercar, ARI, American Brake Supply, General Brake and Pep Boys. ST. LOUIS, Mo. – HDA Truck Pride announces the appointment of John Misken to the HDA Sales and Marketing Team. Effective March 1, Misken will serve as business development manager for the Western Region, reporting to Tina Alread, director of sales and marketing. The business development team is a key component to the growth of the organization. They serve as the face to the industry and the conduit to the membership; enhancing communications, promoting product diversification, driving support of value added programs and services and conducting critical training components.
Branislav Ivanovic is set to sign a new one-year contract at Chelsea.The Serbian defender, who turns 32 next month, has attracted criticism for his performances this season and his current deal expires at the end of the campaign.AdChoices广告But Ivanovic, who has been a key player during his eight years at Stamford Bridge, is expected to extend his stay at the club despite recent speculation about his future.The Blues’ contract offer is in line with the club’s policy of not giving longer than 12-month deals to players over the age of 30. Follow West London Sport on TwitterFind us on Facebook
10/02/2020 “He is very sheepish, reclusive,” his son Edinho said. “Imagine, he’s the King, he was always such an imposing figure and today he can’t walk properly. He’s embarrassed, he doesn’t want to go out, be seen, or do practically anything that involves leaving the house. Óscar Cubero Pelé, abatido por sus problemas de cadera Brazil legend Pele is not having a great time of it. His son Edinho spoke to GloboEsporte and said his father is depressed. Pele had prostate surgery in 2015. Upd. at 19:10 CET “He’s pretty fragile. He had a hip replacement and didn’t have an adequate or ideal rehabilitation. So he has this problem with mobility and that has set off a kind of depression.” IN SPORT.ES
By Melissa Meehan IT’S the end of the line. Pakenham Railway Station is the cause of concern for many commuters,…[To read the rest of this story Subscribe or Login to the Gazette Access Pass] Thanks for reading the Pakenham Berwick Gazette. Subscribe or Login to read the rest of this content with the Gazette Digital Access Pass subscription.
Three cheers for Wally Wombat’s Birthday Party at Pakenham Central Markeplace. A big thankyou to the centre’s Monique Martin for…[To read the rest of this story Subscribe or Login to the Gazette Access Pass] Thanks for reading the Pakenham Berwick Gazette. Subscribe or Login to read the rest of this content with the Gazette Digital Access Pass subscription.