Employers who do not meet their superannuation guarantee obligations can face penalties, fines and interest charges. With the end of another quarter (and indeed financial year) upon us, here’s the essentials you need to know:
- The Tax Office has released a guide that explains how and when the Superannuation guarantee charge (SGC) will apply to employers.
- The SGC applies to all employers who haven’t paid the minimum amount of Superannuation Guarantee (SG) into their employee’s nominated fund by the cut-off date. Currently the cut-off date is 28 days after the end of each quarter.
- The Tax Office states that a ‘Superannuation guarantee charge statement‘ has to be completed and forwarded to the Tax Office along with the Superannuation guarantee charge.
- The Superannuation guarantee charge consists of the following:
The shortfall super that needs to be paid to the employee;
Nominal interest on the shortfall, currently set at 10% per annum; and
An administration fee of $20 per employee
- The Tax Office website gives instructions and examples how to complete the SGC statement, including calculations of the shortfall superannuation amount and the nominal interest on the shortfall. There’s also an SGC calculator.
- The Tax Office also reminds employers that the Superannuation guarantee charge is not deductible, but employers making a late payment may offset this against the SGC in certain circumstances.
- Click here to access the Tax Office’s guide that explains the SGC.
With only 3 weeks left to finalise your Superannuation Guarantee payments for this quarter, Top Class Accounts can assist you to ensure you’ve met all your obligations.