On the back of the Superannuation Guarantee Amnesty grace period, now is a timely reminder of your Superannuation Guarantee (SG) obligations as an employer.
With the majority of employers processing and declaring wages and super via the Single Touch Payroll (STP) system, the ATO have at their fingertips all the resources needed to easily monitor your super guarantee obligations.
Your super guarantee obligations are as follows:
You are required to pay 9.5% SG on all employees’ Ordinary Time Earnings over $450 per month and must be paid by the below due dates
July – September quarter
October – December quarter
January – March quarter
April – June quarter
*When a due date falls on a weekend or public holiday, it automatically changes to the next business day.
The date the super has been paid is taken to be the date that the payment is received by the employee’s super account and not the date when the super was paid.
We recommend you allow at least a couple of weeks for the payment to clear from the clearinghouse to the employee’s super account.
You do not have to make SG payments quarterly.
They can be made more frequently, such as monthly (we recommend this option).
However, it is your responsibility to ensure the full amounts are paid by the quarterly dates above.
Also, importantly, late super payments are not tax-deductible.
What happens if I don’t pay Superannuation on time?
If you don’t pay an employee’s super guarantee on time you are required to pay the Superannuation Guarantee Charge (SGC) and lodge an SGC statement with the ATO. This is the case even if you make the payment later.
The SGC is made up of:
- SG shortfall amounts
• interest on those amounts (currently at 10%)
• an administration fee of $20 per employee, per quarter.
What are the ATO penalties for not paying super?
If you don’t meet your super guarantee (SG) obligations, you may be liable for a range of penalties or charges on top of the SGC. These can include:
- Director penalty notices
- Garnishee notices
Super Contribution Update
Super Guarantee Contributions will increase from 9.5% to 10% from July 1, 2021.