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Paying Employees Super – You Must Understand your Obligations

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Warning – If you don’t pay your employees super on time the ATO will charge you penalties and interest on the money that you owe.

If your employee’s super is not received into their nominated Super Fund by the due date you will then be required to Lodge a Super Guarantee Charge Statement, which involves not only extra paperwork but also you may be penalised by the ATO and charged interest on the late payments.

 So please be aware that:

  1. Interest accrues on the debt at ATO applied rate (currently 10% per annum charged daily)
  2. This interest gets charged from the start of the relevant quarter (so an extra 3 months and 28 days interest)
  3. And interest accrues until the later of when the SGC form is lodged, or when it is all paid (so not when the late super is paid)
  4. So unfairly, this interest is still charged for the full period, even if its 1 day late
  5. The super normally is on ‘ordinary wages’, but SGC is on ‘salary and wages’ so this now includes super on overtime and some allowances
  6. The Super Guarantee Form is required to be lodged within 1 month of the normal due date for the Super Guarantee, or extra penalty of up to 200% can be charged by the ATO
  7. Plus there is a $20 admin fee of each employee, each quarter
  8. Which all of the above payments of late super and SGC interest, etc – is NOT tax deductible

Click for more informtaion:

https://www.ato.gov.au/businesses-and-organisations/super-for-employers/missed-and-late-super-guarantee-payments

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