Salary and Superannuation after the death of an employee

Although hopefully a very uncommon occurrence, there will be questions for the pay office of most employers after the death of an employee.

What are the PAYG and superannuation obligations?

Accrued salary and accrued leave is payable in the normal way, but would be typically paid to the executor.

A recent interpretation by the Australian Taxation Office (ATO) indicates that superannuation obligations must be met.  Failure to do so will result in a superannuation guarantee shortfall.  

The ATO view is that superannuation must be paid in the normal way because the salary has been paid to a “former” employee.

Minimum superannuation obligations apply to current and former employees.  Hence, ATO conclude that payment to the legal personal representative (i.e. executor) of the former employee, triggers a normal superannuation obligation.

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Cristy Houghton

Embarketing, 48 Johnston Street, Wagga Wagga, NSW, 2650

Cristy's unique career has taken her from country NSW to the city lights of Clarendon Street South Melbourne and back again. With an early career in radio as a copywriter and creative strategist, she is now a Jill of all trades as a graphic designer, website builder, blog writer, video editor, social media manager, marketing strategist and more. 

In fact, give her any task and this chick will figure out how to do it! Go on, we dare you!

No, really, we DARE you!!

Cristy has won two Australian Commercial Radio Awards (ACRAs) for Best Ad and Best Sales Promotion, and even has an 'Employee of the Year' certificate with her name on it.

Cristy and her husband James have traveled extensively through Russia, China and South East Asia, and have two fur-babies, Sooty (cat) and Panda (puppy). Cristy loves drinking coffee, meeting people to drink coffee, coffee tasting and coffee flavoured cocktails. She also enjoys road trips, TED Talks and watching cat videos on youtube.