Superannuation Obligations for Employers
September 3, 2023|
Superannuation is an employee entitlement and it is just as important as an employee’s wages!
There are very strict requirements for the reporting and payment of employer super contributions – Super Guarantee (SG). We have seen an increase in communication and review from the ATO regarding employers falling behind with these obligations so we thought we would give you a little recap on what is required.
Quarterly superannuation payment due dates
Firstly, the employer super contributions are due quarterly, 28 days after the end of quarter. The payment dates are below;
1 1 July – 30 September 28 October
2 1 October – 31 December 28 January
3 1 January – 31 March 28 April
4 1 April – 30 June 28 Jul
It’s important you also factor in processing times of your super clearing house and super fund to ensure contributions are received and processed by the due date.
If the due date falls on a weekend or public holiday, the ATO allows payments to be made on the next business day.
You can however opt into paying your obligations monthly which could assist with cashflow.
Due date considerations
Some super funds, awards and contracts require you to pay super more regularly than quarterly.
Meeting the SG contribution payment dates does not ensure compliance with other super funds, awards and contracts.
You should check the contractual obligations you have with your super fund, award or contract to ensure super contributions are paid on time.
Late Super Payments
If you don’t pay the necessary SG amount (which is tax deductible) by the due date, the ATO will impose fees and it is going to cost you!
You are required to report the delayed super to the ATO by lodging a Super Guarantee Charge Statement and pay the super charges straight to them.
The charges, which are not tax deductible, are made up of the payment shortfall, accruing interest (the current rate is 10%) until lodgement and administration fees per employee per quarter. You must pay the charge by a new due date, which is a month after the original super contribution payment due date. Employers can apply for an extension of time to pay.
Continued avoidance is a serious matter. The ATO has a range of options to recover money owed to employees, and some hefty penalties for employers who don’t comply.
We are experiencing increasing review activity from the ATO in relation to late payments of employer superannuation.
Employer super contributions are required to be processed under SuperStream requirements. Under SuperStream the money and data are sent electronically in a standard format.
If you have any questions about your current super payment system and if it is compliant, please let us know.
Super payment data must also be reported electronically along with your wages via your Single Touch Payroll system.
Need help understanding your superannuation obligations?
Reach out to one of our friendly Poole Group tax advisors today.
By Elise Wood