The ATO have recently expanded their data-matching activity into the Superannuation Guarantee (SG). This means employers obligated to pay SG are facing increased audit activity. The consequences of not paying your employees superannuation on time are severe.
What happens if I’m late with or miss a SG payment?
You must pay your employee’s superannuation by the 28th of the month, following the end of each quarter. If you do not pay an employee's minimum superannuation guarantee amount on time and to the right fund, you must pay the superannuation guarantee charge (SGC). You must also lodge an SGC statement to the ATO. The SGC is more than the super you would have otherwise paid to the employee's fund and is not tax deductible.
I’m liable for the Superannuation Guarantee Charge (SGC) – What should I do?
If you’ve made late SG payments, or missed a payment, you must report it to the ATO via the SGC Statement. You can lodge the statement through Online services for businesses. The due date for payment of the SGC and lodging the statement is one calendar month after the SG due date. (See lodgement due dates here). If you’re late lodging/ paying the SGC, interest (currently 10%) will accrue daily on the late amount until the form is lodged/payment is made.
How much SGC will I need to pay?
The Superannuation Guarantee Charge is comprised of:
- The SG shortfall (see more information here)
- Nominal interest of 10% per annum (accruing from the start of the relevant quarter)
- An administration fee of $20 per employee, per quarter
You can ascertain how much SCG you owe by using the ATO Superannuation Guarantee Charge Calculator Tool.
Assess your SG Payment Processes
The ATO has recently become much more stringent on monthly payment time frames and imposing these SGC penalties, so it is imperative that your business has a robust employee superannuation payment process in place to avoid such fees.
If you’d like to discuss the systems you currently have in place, or how to ensure SG payments are being made in a correct and timely manner, fill in the form and your Client Manager will be in contact.
