If you have employees who earn $450 or more in a calendar month, then you may need to pay their super. The minimum amount you must pay is called the super guarantee (SG) and the rate is currently 9.5% of wages.
SG is due to be paid to your employees chosen superfund by the 28th day of the month following the end of the quarter:
When payments are late, employers will be liable for a penalty. This is known as the super guarantee charge (SGC) and consists of the super shortfall amounts with an additional 10% interest and an administration fee of $20 per employee, per quarter.
But it doesn’t end there…. you must also complete an ATO superannuation guarantee charge statement for each quarter and submit this to the ATO along with payment. Interest will continue to accrue until the statement has been received by the ATO.
It is the employers responsibility to ensure that they have their staff’s superfund details. If the employee fails to give you this information, the onus is on you to pay the super into your nominated superfund.
If you are unsure as to whether you are required to pay super, or if you think your payments may be late, please contact us at HQB Chartered Accountants.
– Posted 8.9.17
This article is compiled as a helpful guide for your private information and is subject to copyright. We suggest that you do not act solely on the basis of material contained in this article because items are of general nature only and may be liable to misinterpretation in particular circumstances. We recommend that our advice be sought before acting on any of these crucial areas.