What To Do With a MissedSuper Deadline

‍Although employee super guarantee payments may not be at the top of your list when it comes to managing your business finances, they should be very close to avoid charges and more serious issues with ongoing payment delays.

With the July 28 deadline just around the corner (consider this a reminder!), we thought we’d look at what you should do with a missed super deadline or indeed if you’ve simply paid an incorrect amount.

There is a charge …

The penalty for late super (which also applies if you need to adjust after an incorrect payment), is called the Superannuation GuaranteeCharge (SGC) and is calculated based on how much you owe alongside the recipient’s salary. The fee includes:

• The shortfall amount (if the contribution is late OR incorrect)

• Interest of 10% per annum, and

• an administration fee of $20 per employee, per quarter

But don’t let panic set in…

Firstly, if you realise you’ve underpaid or missed a payment, remain calm and contact the ATO once you’ve identified the issue and the details around amount(s) missed or underpaid.

If Attune act as your accountant, missing a payment like this will be very unlikely, but if you think there is an error, contact us so we can check your workings and take appropriate action with the ATO if required.

It’s important to note that if the amount is restrictive for your business, the ATO can support you with payment options within reason.

How can I avoid missed or incorrect payments moving forward?

Put simply, with the Attune team on your side, you’ll be sitting pretty. But, if you’re yet to have us assist with this kind of thing here are some considerations:

1. Your employee’s super contribution is only considered“paid” on the date it is received by the super fund. This is a big deal – paying on the due date, may find you with an unintended SGC fee.
2. If you’re using a clearing house, ensure you’re aware of their processing timeframes as any payments that don’t arrive in the fund on time will be considered late.
3. Using Single Touch Payroll-compliant platforms allow you to set up regular payment systems that take care of on-time payments. If you’d like help setting this up for your business, the Attune team is here to assist.
4. For a self-service style approach, the ATO have a solid super guarantee compliance system that can help you get your payments right byway of tools and calculators. You can contact the ATO for specific help on this via phone on 13 10 20.
5. Speak with the Attune team. We can put the right strategies in place for your business that will help you manage your super payments effectively and with very little effort on your part. You can start the conversation with us via email or by calling us on 1300 866 113.

One more thing …

Although the SGC is not tax deductible (and companyDirectors can be held personally liable for fees), there are options for offsetting late payments against the SGC, but eligibility criteria apply which is again, something we can assist you with.

If you’d like help managing your business’ super contributions or indeed your own Self Managed Super Fund, the Attune team is perfectly equipped to assist.