Getting employees' super obligations right

Avoid the sting of a super high penalty

There has never been a more important time to get your superannuation obligations right for your employees.

This means paying the right amount, to the right fund, at the right time.

If you don’t pay enough super for your employees, or pay super late, you need to:

• lodge a super guarantee charge statement with the ATO by 28 May 2021, to disclose to the ATO any super you have missed or paid late
• pay the super guarantee charge.

Unlike paying super guarantee on time, the super guarantee charge is calculated on an employee's total salary and wages (including overtime and some allowances) and includes interest and an administration fee of $20 per employee, per quarter.

You may be able to claim a late payment offset, or carry forward contributions, for any late payments you made to your employee's fund.

How to avoid an additional penalty

An additional penalty will apply to unpaid or late paid super where employers don't lodge a super guarantee charge statement by the due date. The penalties may be higher if you don't come forward voluntarily before an audit.

The maximum penalty is up to 200% of the total super guarantee charge and can only be remitted under very limited circumstances.

To avoid a penalty, employers must lodge a super guarantee charge statement within one month of the superannuation quarterly due date.

If you're worried you will have difficulty paying the super guarantee charge, contact Flor-Hanly's Chartered Accountants in Mackay on 07 4963 4800 so we can work on finding a solution tailored to your situation.

Source: ATO