Are you using your super powers to make the world a better place for your team in their retirement?
January – March super contributions need to be in your employees superannuation fund accounts today, what happens if that deadline hasn’t been met?
Penalties. Harsh penalties and yet more paperwork – business kryptonite.
If you do not make payments on time (and you need to allow time for the money to fly through cyber space and be processed by the fund) you need to complete a Superannuation guarantee charge statement and submit it to the ATO.
ATO says: The super guarantee charge is non-deductible against your business income. It has 3 components:
– super guarantee shortfall amounts calculated on your employee’s salary or wages (not just ordinary time earnings, overtime and other payments now attract super)
– nominal interest on those amounts (currently 10%)
– an administration fee ($20 per employee, per quarter).
The super guarantee charge is paid to the ATO. It is then distributed to the employees’ complying super funds, less the administration fee.
The extra cost of late payment can be significant, particularly when you consider the deductibility of on-time payments and the non-deductibility of the super guarantee charge.
Director penalties
The director of a company who fails to meet a super guarantee charge liability in full by the due date automatically becomes personally liable for a penalty equal to the unpaid amount.
When a super guarantee charge liability remains outstanding, a director penalty notice may be issued. This enables the start of legal proceedings to recover the penalty. Even without issuing a notice, the penalty can be collected by other means – for example, by withholding a tax refund.
Find all the ATO details here
Be a super hero for your staff and make sure superannuation payments are made on time!
