Business owners are reminded that you should be paying your employee superannuation contributions on time to avoid being hit with interest and administration fees.
The Superannuation Guarantee is the official term for compulsory superannuation contributions you make on behalf of your employees, which is the equivalent of 9% of an employee's salary.
Employers must pay the Superannuation Guarantee contributions by the 28th day of the month following the end of the quarter. If you don't meet that deadline, your business will be liable for the Superannuation Guarantee Charge (SGC), which is made up of:
- The super guarantee shortfall amounts;
- Interest on the amounts owning (10% per annum); and
- An administration fee ($20 per employee per quarter outstanding)
If your business doesn't pay the super contributions on time, you'll have to lodge a Superannuation Guarantee Charge Statement Quarterly
(SGC Statement) for each quarter where SG contributions have not been made on time and ensure that any outstanding amounts are paid. These contributions can not be claimed as a tax deduction.
If you've made any late contributions to a super fund prior to lodging your SGC Statement, you can choose to offset them on your SGC Statement and any outstanding balances can be paid at the time you lodge your SGC Statement with the ATO. You may also be able to use the late contribution toward the super guarantee liablity of the next quarter.
To get more information or advice about your current superannuation contributions or if you have any outstanding, please contact our team on 02 9957 4033 or email us at firstname.lastname@example.org.
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Last updated July 2012. 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.