Processing fine collection notices

Part of the Debt collection agencies topic

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In short

What you should know

You may receive a fine collection notice (FCN) from SPER directing you to deduct money from your employee's or client's earnings to pay their SPER debt.

You may be an:

• employer
• bank or financial institute
• another organisation that holds money on a client's behalf.

This is a legally binding requirement—you must deduct the amounts shown in the FCN and pay it to SPER.

Late payment or failure to comply may result in penalties or prosecution proceedings against you.

The FCN will specify whether you are to pay the full amount or regular smaller payments until the debt is cleared.

Organise payment to SPER

It is your responsibility to enforce the FCN and send monies collected to SPER by the 7th day of every month. The deductions must start from the next available pay cycle after you receive the FCN.

Use the fine collection calculator to work out the amount you need to remit to SPER.

Employers

Employers must provide certain forms to SPER when:

• you send each monthly payment (Form 3011–Return of payments schedule)
• you cannot make a payment, unless the employee stops work (Form 3010–Return of non-payments schedule)
• the employee stops working for your organisation, or never worked there (Form 3005–Notice of cessation of employment).

Read the employers guide on processing FCNs.

Banks or financial institutions

Banks or financial institutions must provide certain forms to SPER:

• up to 2 debtors (Form 3021–Fine collection notice return)
• any additional debtors (attach Form 3021a to first form).

Read the financial intuitions guide on processing FCNs.

Other organisations

You must provide a completed Form 3021–Fine collection notice return and payment.