Super was due into your employees super funds by 28th July.
ATO says: Your employee’s super contribution is only considered ‘paid’ on the date it’s received by the super fund. Not the date it’s received by the clearing house.
What happens if the fund did not receipt the cash on or before 28th July?
The expense is no longer tax deductible, super is calculated on all payments to employees (like overtime and allowances), fines are payable to the ATO, interest is payable to the fund for the employee, and directors will be personally chased for the payment. You need to lodge a Super Guarantee Charge (SGC) statement and make payment to the ATO for them to distribute. Interest continues to accrue until you submit the SGC statement – even if you’ve paid the super.
ATO says:
Employers are required by law to lodge a Super guarantee charge statement and are liable for the super guarantee charge (SGC) if they:
- don’t pay the right amount of super guarantee contributions to a complying super fund by the due date
- don’t meet their choice of fund obligations by: providing their eligible employees with a choice of super fund, or requesting a stapled super fund for employees who start on or after 1 November 2021 and are eligible to choose a super fund, but don’t.
The SGC is non-deductible against your business income.
It has 3 components:
- super guarantee shortfall amounts, including any choice liability and calculated on your employee’s salary or wages (not ordinary time earnings)
- nominal interest on those amounts (currently 10%)
- an administration fee ($20 per employee, per quarter).
To report and rectify the missed payment, lodge a Super guarantee charge statement and pay the SGC to the ATO by the due date.
If you’ve realised you haven’t made the payment on time, submit the statement ASAP to minimise the interest charges you’ll be liable for. Burying your head in the sand and hoping no-one notices could cost you a lot more down the line.
Need help to keep on top of all the deadlines? Ask us to give you a hand.
