We have recently received correspondence from the ATO informing us that Superannuation Funds now provide information to the ATO when they receive superannuation guarantee (SG) contributions for employees. The ATO are using this information as well as Single Touch Payroll (STP) reporting to identify employers who have paid some or all of their super contributions late or haven't paid the right amount by the due dates for their employees.
If you have not meet your SG obligations as an employer, the ATO may contact you to advise you need to lodge superannuation guarantee charge (SGC) statements for the relevant periods. Even if you have since paid outstanding or underpaid SG contributions to your employee's fund, you still need to lodge an SGC statement and pay the SGC to the ATO, as well as penalties and interest.
SUGGESTED PREVENTION METHODS:
To avoid the need for the administrative cost of SGC statements in the future and related penalties/interest we have listed below some suggested ways to keep your super obligations up to date:
1. Pay your employees SG contributions at the same time as you pay your payroll to ensure that the payments are not missed.
2. Process SG contributions at least 3 days before the due date to ensure that the payments will be received by the employees super fund on time – software assisting with super payments, such as Xero or the Superannuation Clearing House, require a lead time to ensure the payment is received by the super fund on or before the due date.
3. Set up a recurring calendar reminder – the due date is always 28 days after quarter end (subject to working days, but will never be less than 28 days).
IMPORTANT DATES
LATE PAYMENT
If you find cashflow is tight and you cannot pay on time you are:
required to lodge SGC statements within 1 month of the due date
liable to pay the SGC
You may be able to elect to receive a late payment offset (LPO) to reduce the SG shortfall and nominal interest. An LPO can only be used for the contributions that are paid before an SGC assessment is raised. Please note once a late payment offset is elected the super payment is no longer deductible.
The ATO has a SGC statement calculator tool to assist with generation of the SGC statement.
WHY LODGE THE SGC STATEMENT ON TIME?
When you lodge the SGC Statement on time, you can access ATO support services that provide help with paying. If you cannot pay in full, but you lodge the statement by the due date, you may be able to set-up a payment plan to pay in instalments.
If you miss a due date, interest for paying super will accrue until you lodge your SGC statement. Nominal interest is part of the SGC and, by law, cannot be reduced or waived.
We are here to help. Please do not hesitate to contact our office if you have any queries.