A client recently found out the painful way that by lodging and paying their employees superannuation late, a week too late in one instance, they are now having to fill out additional paperwork to report to the ATO, via Super Guarantee Charge statements (SGC).

The worst part is the employer’s failure to comply to the lodgement and payment deadlines has resulted in the ATO imposing interest on the outstanding super (currently 10%) and an administration fee ($20 per employee per quarter) which are NOT tax deductible. 

The ATO has also imposed an additional Super Guarantee Charge due to failure to lodge the SGC Statements on time which is equal to 200% of the original Superannuation. Also, NOT tax deductible.

The ATO is currently focusing on businesses who are not abiding to the lodgement and payment deadline dates for employee’s superannuation.

Reporting to the ATO after lodging and paying employees super late is going to cost small businesses hugely in time and money, through the non tax deductible penalties and interest.

Unfortunately, both time and money cannot be claimed back.

As a small business owner, I know how precious both these commodities are.

Being a business owner with employees comes with a huge responsibility to pay and lodge the employees super by the quarterly due dates. 

Super Guarantee payments are due by the 28th day following the end of each quarter – 28th October, 28th January, 28th April & 28th July. This is the date that the lodgement and funds need to be received by the superfund.

The next quarterly due date is 28th October 2021.

Put this date in your diary now – in fact I would also put in 14th October 2021 in BOLD and highlighted. 

This is to give you time to organize the lodgement and payment to be processed by 28th October 2021.

Once you have put this in your diary, go to January, April and July and mark the 14th again as the day to pay and lodge the last quarters superannuation.

I know as a business owner we become busy, but this is one of those tasks you need to prioritize, no excuses. 

If you don’t have the time, I would highly recommend contracting a bookkeeper to assist you with the business’s employee reporting and lodgement.

It could save you thousands of dollars in unclaimable ATO penalties and interest.

Remember, if the superannuation payment is not made on time, then the superannuation guarantee charge statement must be completed and the super paid to the ATO within the next month – 28 November, 28 February, 28 May & 28 August. 

Hoping you don’t have to remember this as you will pay and lodge all employees super on time every time.

We will be emailing shortly our quarterly newsletter reminding our clients to pay their employees super by 28th October 2021.

If you would like further information on Super Guarantee Charge and how it is calculated go to the ATO website at www.ato.gov.au/SGC 

Alternatively, click here to contact us today to set a time to discuss your taxation, business or SMSF needs.