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.
7th-September-2015 | 