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The ATO is reminding small business owners to pay the correct amount of superannuation for their eligible employees by the due date to avoid paying the superannuation guarantee charge (SGC).
The superannuation guarantee (SG) increased on 1st July 2022 from 10% to 10.5%.
The minimum monthly threshold for employees has also been abolished. Previously, superannuation did not need to be paid if an employee earned less than $450 (before tax) in a month. Now, there is an obligation to pay super on all salary and wages for eligible employees.
Remember, you must ensure you've applied these changes to all salary and wages paid on or after 1 July 2022, even if the pay itself refers to a period prior to 1 July.
Your employees' fund needs to receive the payment in full on or before the quarterly due dates as follows:
28 July
You can make SG payments as often as you like - they just need to be completed quarterly at a minimum.
If you miss the due date for quarterly payments, or if you pay late, you will need to lodge a superannuation guarantee charge (SGC) statement by one month after the quarterly due date. The SG charge is more than the superannuation you would have paid to your employee's fund. Missed or late superannuation payments are no longer tax deductible.
Contact me using the form below, or feel free to reach out to me direct on 08 9071 2173 or at cheryl@smithshearer.com.au.
If you haven’t heard of Primary production averaging (or your ‘five-year average’) before, you’re not alone. It’s a specialised area of agribusiness taxation. If your Accountant doesn’t specialise in primary production accounting, they may not know how to use your five-year average to your tax advantage, ensuring your maximum cashflow is kept in your business.
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