Question

What superannuation records are required by the fair work act and superannuation guarantee legislation? Explain the differences between the two requirements.(Australia environment)

Answer 1

Superannutation Record-keeping UnderFair Work Act

Employers have to keep time and wages records for 7 years.

Time and wages records have to be:

• readily accessible to a Fair Work Inspector (FWI)
• legible
• in English.

Time and wages records can’t be:                                                    

• changed unless the change is to correct an error
• false or misleading.

What records have to be kept and what needs to be in them?

Certain information needs to be kept for each employee.

Here is a list of the records that an employer has to keep and what information has to be in the record.

General

• employer’s and employee’s name
• employer’s ABN (if any)
• employee’s commencement date
• whether the employee is full-time, part time, or casual
• whether the employee is permanent or temporary.

Pay

• pay rate paid to the employee
• gross and net amounts paid
• any deductions from the gross amount
• details of any incentive-based payment, bonus, loading, penalty rate, or other monetary allowance or separately identifiable entitlement paid.

Hours of work

• any penalty rates or loadings paid to employees for overtime hours worked, including:
  • the number of overtime hours worked by an employee during the day
  • when the employee started and finished the overtime hours
• the hours an employee works if the employee is a casual or irregular part-time employee who is paid based on time worked
• a copy of the written agreement if an employer and employee have agreed to an averaging of the employee’s work hours.

Leave

• any leave taken
• how much leave an employee has.

If an employee is able to cash out annual leave, the employer has to keep:

• a copy of the agreement to cash out the amount of leave
• a record of how much was paid, the amount of leave cashed out and when the payment was made.

Under an award, if an employer agrees for an employee to take annual leave in advance, the employer has to keep a copy of the agreement. The agreement has to say the amount of leave taken and the day the leave starts.

Superannuation contributions

• amount paid
• pay period
• date(s) paid
• name of super fund
• reason the employer paid into the fund (eg a record of the employee’s super fund choice and the date they made that choice).

If employers pay a defined benefit interest into a defined benefit fund , employers don’t have to include these contributions in the record.

Individual flexibility agreements

If an employer and employee agree to an individual flexibility agreement under an award or registered agreement, a record must include both:

• a copy of the written agreement
• a copy of any notice or agreement to terminate the flexibility agreement.

Guarantee of annual earnings

• the guarantee
• the date the guarantee was cancelled (where applicable).

Ending employment

• how the employment was terminated e.g.by agreement, summarily, or in some other way (specifying details)
• if notice was provided and, if so, how much
• the name of the person who terminated the employment.

Records Under superannuation guarantee legislation

We must keep records that show:

• how much super guarantee (SG) we paid for each employee and how it was calculated
• that we have offered each eligible employee a choice of super fund.

We can use whatever method suits we best to keep these records, but:

• Our records must be written in English (or in a format that can be easily accessed and converted into written English).
• We must keep the records for five years.
• If we keep electronic records, software must be available to access older floppy disks, CDs and computer records.

Even if we use a clearing house to distribute super to Our employees' funds, we're still responsible for keeping adequate records of super guarantee payments.

Choice-of-fund records

Keep these records:

• Evidence that we've given the Standard choice form to all eligible employees – for example, emails if we issued the form that way – and the written information wer employee provided when they nominated their chosen fund.
• Details of employees we don't have to offer a choice of super fund to.
• Confirmation that our nominated (default) fund offers a Super product.
• Receipts or other documents issued by the fund showing we've made super contributions for that employee.