On 9 October 2013, the ATO will issue letters to directors of companies that have unpaid superannuation guarantee owed to their current and former employees. The letters explain the obligations of directors and their personal risk when it comes to superannuation guarantee debts.
The letters relate to the changes to the law made on 1 July 2012 that extend the director penalty regime beyond PAYG withholding amounts to unpaid superannuation guarantee. On that date, company directors became personally liable for any unpaid superannuation owed. Smaller businesses tend to have issues with cash flow so it's more likely that SMEs will be targeted, however larger businesses will not be immune.
If you or your directors receive any correspondence from the ATO, the first step is to determine if any amounts in the letter match what your business owes its employees.
Speak to your accountant
, tax adviser or the ATO to find out what your next steps should be if you find your business is not in a position to pay any amounts owed. Given the liability now applicable to company directors, this is not a letter you should ignore.
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Last updated October 2013. This article is provided for information purposes only and should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.