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Jean Rey

Jun 09, 2023

Employer Contributions (self employed)

in SMSF Technical Forum

Hi SMSFAAA Team,

I am auditing a fund (2022) with a member who turned 70 years old on March 2022.

The member has his own business and contributed $23,000 (recorded as employer concessional contributions) into the fund.

Would it be considered as compulsory or voluntary employer contributions?

What evidence would you request?

Would you request a Work Test Declaration?

Thank you in advance

Kind Regards

2 comments

Comments (2)

KOON CHENG WEE

Jun 09, 2023

If it is a concessional contribution then it is not voluntary;

The evidence is the contribution has to be received into the superannuation bank account

I think this work test declaration is no longer required from 1 July either in 2022 0r 2023. However, there is no harm having a work test declaration prepared

THE AUDITORS INSTITUTE

Jun 09, 2023

Hi Jean Rey

Yes for the 2021/22 year for your member aged 70 to be able to receive an employer contribution that is a voluntary employer contribution they need to meet the work test.

Compulsory contributions are normally only the superannuation guarantee contributions.

The $23,000 mat be a split of compulsory and voluntary employer contributions.

Yes I would request a work test declaration & documentation to show that they are employer contributions.

Thanks

SMSF AAA