Forum Discussion

steve4551's avatar
steve4551
Member
5 months ago

Wages with NO super

A court ordered mediation has agreed to pay a previous employee a gross sum as wages at the marginal tax rate with an indemnity on the super. Is this possible? Is it legal?

2 Replies

  • Genreve_S's avatar
    Genreve_S
    MYOB Moderator
    5 months ago

    Hi steve4551

     

    Totally get wanting to make sure legal is all above board before diving in. Forums can be handy, but for this one, it’s best to have a quick chat with a qualified accountant or financial adviser to make sure you’re covered and doing it by the book.

     

    Regards,
    Genreve

  • steve4551's avatar
    steve4551
    Member
    5 months ago

    Genreve,

    The court ordered mediation was handled by my barrister who asked for an indemnity on the super. This was part of the 'agreed settlement'. I stewed on this overnight that was not going to work with the payroll system. My accountant confirmed this. I suggested 1/12th of the amount as super the balance as 'wages and tax'. This was put to the other party and rejected. So, my next thought is , can I 'turn off' the super payment/reporting on this one off payment?

    Regards Steve