The Super Guarantee paid by an employer to their employee's super fund account isA.tax free.B.part of concessional contributionsC.taken from salary before tax.D.a part of the gross salary of the employee
Question
The Super Guarantee paid by an employer to their employee's super fund account isA.tax free.B.part of concessional contributionsC.taken from salary before tax.D.a part of the gross salary of the employee
Solution
The Super Guarantee paid by an employer to their employee's super fund account is:
A. Not tax free. The Super Guarantee is subject to contributions tax, which is paid by the super fund.
B. Part of concessional contributions. Concessional contributions are contributions made into your super fund before tax. They include employer contributions, such as the Super Guarantee.
C. Not taken from salary before tax. The Super Guarantee is a mandatory contribution made by the employer on top of the employee's salary. It is not deducted from the employee's salary.
D. Not a part of the gross salary of the employee. The Super Guarantee is a separate contribution made by the employer on top of the employee's salary. It is not included in the gross salary of the employee.
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