Friday, October 10, 2008

Do I have to provide an employee's TFN to their super fund?

This is an important question: do you need to supply an employee's Tax File Number (TFN) to the employee's chosen super fund?

As of July 1, 2007, when your employee fills out a TFN declaration form, you must pass it on to the super fund.

If you do not pass on your employee's TFN you will be guilty of an offence and liable to pay a penalty. Further, your employee may have to pay extra tax on the contributions made to the super fund, and more, your employee may miss out on the Federal Government's super co-contribution payments.

If you make employer contributions for an employee, you need to give the fund the TFN within 14 days of receiving the employee's TFN declaration form. But if you do not make a contribution for the employee for that period, you may pass the TFN on when you make a contribution.

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