Severe Penalties for Late Super Payments
As an employer, it’s important to meet your superannuation obligations to ensure you are not faced with penalties.
Superannuation needs to be paid into your employees nominated fund at least quarterly.
Payments are due:
March quarter Pay by 28th April
June quarter Pay by 28th July
September quarter Pay by 28th October
December quarter Pay by 28th January
There are no extensions available for these payments. The Australian Taxation Office (ATO) strictly enforce this policy.
Late payment penalties include:
- The requirement to pay 9.5% superannuation on all wages, not just ordinary times earnings. For example, you generally don’t need to pay super on overtime, however if payment is late you will need to include payment of an additional 9.5% superannuation on overtime.
- Not being able to claim a tax deduction for late superannuation payments.
- Preparing a separate statement to send to the ATO for late payments, which will include interest and administration fees, neither of which are tax deductible. The time or cost involved in preparing the statement also needs to be factored in.
- Directors of companies, sole traders, trustees and partners in partnerships may be personally liable for unpaid superannuation.
Single touch payroll becoming compulsory for all employers from 1st July, 2019 means full transparency. The ATO will have access to real time data on your superannuation liability and they will be able to cross check it against the data they receive from superannuation funds confirming amounts paid.
The message is clear and simple – pay superannuation – on time.
If you wish to discuss this with your Accountant, please contact Patrick Rowan & Associates tel: 5221 7655