Given the recent ATO Superannuation Guarantee Amnesty period ended on September 7, now is a timely reminder of your Superannuation Guarantee (SG) obligations as an employer.
Whether you employ related or unrelated employees, your superannuation guarantee obligations are as follows:
- You must pay 9.5% SG on all employees’ Ordinary Time Earnings over $450 per month.
- SG must be paid by the following due dates:
- July – September quarter October 28
- October – December quarter January 28
- January – March quarter April 28
- April – June quarter July 28
- You do not have to make SG payments quarterly. They can be made more frequently (such as monthly). However, it is your responsibility to ensure the full amounts are paid by the quarterly dates above.
- If SG is not paid by the due date, you must lodge a quarterly Superannuation Guarantee Charge (SGC) statement and pay the amount due, which will include interest and penalties. This amount is known as the SGC amount.
- You cannot claim the SGC amount as a tax deduction, even when paid at a later date.
- If, as an employer, you both fail to pay SG on time and fail to lodge an SGC statement on time, there are additional penalties that the tax office are able to apply – starting at 200% with the potential to be reduced to 20% of the SG amount due, dependant on the specific circumstances.
With most employers, if not all, now declaring wages and superannuation via the Single Touch Payroll system, the tax office have at their fingertips all the resources needed to easily monitor compliance with your superannuation guarantee obligations. Given a Superannuation Guarantee Amnesty has already been provided for voluntary disclosure of non-compliance, the tax office are unlikely to reduce penalties for non-compliance with the superannuation guarantee rules going forward.
Superannuation Guarantee Contributions are currently slated to increase from 9.5% to 10% from July 1, 2021.
Should you have any questions regarding the above, please do not hesitate to contact your local Accru advisor.