All employers have certain obligations to fulfill in relation to employee wages and in particular an employee’s taxation and superannuation liabilities.

2. Director liability for company’s
non-compliance – employee
obligations

4. All employers have certain obligations to fulfill in
relation to employee wages and in particular an
employee’s taxation and superannuation
liabilities. Employers would know that they are
required to withhold money from wages under t

5. the pay as you go (PAYG) system under
the Income Tax Assessment Act 1997, but also
that they must pay a superannuation guarantee
charge (SGC) on behalf of an employee, under
theSuperannuation Guarantee (Administration)
Act 1992.

6. This means that where an employer is a company,
and the company fails to comply with their
obligations under the PAYG system, or under the
SCG provisions, a company director can be held
personally liable for the amount that the company
should have paid.

7. In certain circumstances, the ATO can force
directors of a company that are unwilling or unable
to meet their obligations, to personally pay those
debts. This is achieved with the issue of a director
penalty notice for an amount equal to these
amounts.

8. If you are seeking advice about an employer’s
obligations to employees, or directors’ liabilities for
non-compliance of obligations to employees,
please contact our office and speak with one of
our experienced practitioners.

9. For more details
Visit us @
http://www.bambricklegal.com.au/
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(08)8362 5269