Super Compliance in 2020
Single Touch Payroll reporting and super funds reporting all payments received means that the ATO is now able to see:
Which employers are not reporting,
Which employers are not accruing Super, or not accruing correctly, and
Which employers are not paying Super
The ATO, as regulator of Superannuation Guarantee, now has the means to be proactive in chasing employer compliance.
An employer must lodge the Super Guarantee Charge forms if super is late or missing. Late payment does not stop the penalties accruing. The paperwork must be done.
Once you have missed a payment, you are required to fill in an ATO Superannuation Guarantee Charge Statement. This means the unpaid superannuation will be paid to the ATO, which will then distribute the payment to the employees' super funds.
The penalties for not paying/reporting can be significant and may include:
An administration fee of $20 per employee per quarter
Interest of 10% per annum calculated daily
The Superannuation Guarantee calculation differs and must be re-calculated on all salary and wages, not only on Ordinary Time Earnings. For example: Superannuation Guarantee is not usually calculated on annual leave paid on termination or overtime wages. However, if super is paid late, these categories are then included in the calculation, which may mean a significant increase in the amount of super to be paid.
Superannuation amounts paid late are not tax deductible for your business.
The director of a company that fails to meet a Super Guarantee Charge liability in full by the due date automatically becomes personally liable for a penalty equal to the unpaid amount.
If you lodge your Super Guarantee Charge Statement late, or fail to provide a statement or information when asked by the ATO, you are liable for a penalty (Part 7 penalty). The maximum penalty is 200% of the amount of the charge payable.
Contact us to find out what is required if you have outstanding superannuation guarantee lodgements/payments.