Superannuation Guarantee Obligations

Late Payments. 

If you don’t pay an employee’s superannuation guarantee (SG) to the right super fund on or before the due date you must lodge a superannuation guarantee charge (SGC) statement and pay the SGC to the ATO. In addition, the following penalties apply: 

1. The amount of superannuation payable is calculated on the total salary and wages including overtime;
2. Interest at the rate of 10% is payable from the start of the relevant quarter until the date that the form is lodged;
3. An administration fee of $20 is payable per employee per quarter;
4. A penalty of up to 200% of the SG amount can be charged, and
5. The payments are not tax deductible.

Please note that paying the superannuation to the fund after the due date does not fix the problem.  Interest will continue to accrue until the form is lodged.

Superannuation funds are now required to report the receipt of superannuation payments to the ATO, including details of the employees and the dates received.  The ATO are using this information, together with salary and wage information reported via the STP system, to commence audits of unpaid and late paid superannuation.

If you have paid SG late at any stage during the year, please arrange for the SGC payment form to be prepared and lodge it with the ATO as soon as possible.

If you have any queries, or require any assistance regarding your SG Obligations, please contact our office.