Strafzahlungen wegen fehlerhafter Diskriminierungstests

Definition

In US 401(k) plans, failure of annual ADP/ACP tests commonly requires **refunds of excess contributions to highly compensated employees** and/or additional employer contributions, and late corrections attract a **10% excise tax on refunded amounts**.[1] Similar nondiscrimination and equivalence requirements exist in Australian superannuation and insured employee benefit arrangements (e.g. no undue discrimination in employer contributions and insured benefits under SIS and anti-discrimination law). When administrators run tests late or incorrectly in spreadsheets, they often discover breaches only after the end of the year, forcing **bulk correction payments** and potential ATO scrutiny. Logic-based extrapolation from US data (where ~30% of small plans fail at least one ADP/ACP test each year[1]) suggests that Australian funds with comparable testing obligations can face: (a) corrective employer top‑ups in the order of 0.5–2.0% of covered payroll for the year; (b) loss of expected tax concessions if the arrangement is found non‑complying; and (c) advisory and rectification fees. For a mid‑size employer with AUD 10m payroll and a 10% contribution rate, a 1% corrective adjustment plus professional fees can easily reach **AUD 100,000** in a breach year. Where corrections are made late, the US benchmark 10% excise on refunded contributions[1] supports a logical risk range of **AUD 5,000–20,000** per event in penalty‑style costs for Australian analogues (interest, penalties, and professional fees).

Why This Matters

The Pitch: Insurance and employee benefit fund administrators in Australia 🇦🇺 easily bleed AUD 10,000–50,000 p.a. per medium fund in corrective payments, excise-style penalties and advisory fees when annual plan compliance testing is handled manually. Automation of eligibility checks, contribution monitoring and test calculations eliminates most of this risk.

Affected Stakeholders

Trustees and directors of superannuation and employee benefit funds, HR and payroll managers in sponsoring employers, Benefits administration managers at insurers and third‑party administrators, Compliance officers and internal auditors

Related Business Risks