Have you paid super for your employees for the September quarter?
Make sure you’ve updated super rates to 10% for all employees.
This also the first quarter of new rules for closely held employees (owners and their families), annual wages are no longer acceptable, they need to have wages declared each quarter and super will be payable.
The super needs to be in your employees account by 28th October – tomorrow! If you haven’t already paid (through a clearing house – paying direct is not allowed and hasn’t been for years), you’ll probably miss the deadline. It takes longer than you think for clearing houses to process the payment and distribute to each employee. And you are on the hook for that delay.
What happens if you miss the deadline? How bad is it? Real bad!
ATO says: 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 us.
The SGC is more than the super you would have otherwise paid to the employee’s fund and is not tax deductible. (the super and the extra fees)
Working out the SGC
If you miss making a super guarantee payment on time and to the right fund, you meet legal obligations by lodging an SGC statement by the due date and paying the SGC to us.
The superannuation guarantee charge is made up of:
– super calculated on salary and wages (including any overtime)
– any choice liability, based on the shortfall and capped at $500
– nominal interest of 10% per annum (accrues from the start of the relevant quarter)
– an administration fee of $20 per employee, per quarter.
You can read all the details and get the forms that need completing at the ATO
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