As we approach the end of Quarter 3, 2020/21; this is an important reminder of the upcoming 28th April 2021 due date for payments of your mandatory employer Superannuation contributions.
We noted previously in October 2020, the legislated Superannuation Amnesty Period has now expired, meaning employers will now be fined for non-compliance in regards to paying Superannuation for their employees, including business owners who are paid wages.
Please keep in mind, payment of the Superannuation Guarantee into an employee’s fund is due quarterly according to the following due dates:
- For the 1 July – 30 September quarter: 28 October;
- For the 1 October – 31 December quarter: 28 January;
- For the 1 January – 31 March quarter: 28 April;
- For the 1 April – 30 June quarter: 28 July.
Where SGC is paid late (i.e. after the 28th day of the month following the end of the quarter) there will be a minimum penalty of 100% of the SGC amount and a maximum of 200%. The ATO staff will not have discretion to reduce the penalty below 100% where the employer hasn't voluntarily come forward to lodge an SG Statement prior to any ATO compliance action.
Therefore, we urge you to check your records each quarter to ensure that all mandatory 9.5% superannuation contributions have been paid by the 28th day after the quarter end. As outlined above, for the quarter-end March 2021, this is 28 April 2021. If any superannuation is underpaid or paid late (even if it is only one day late) you are required to lodge an SGC statement advising the ATO of the amount that wasn't paid on time. Interest and admin charges are payable on lodgment of the form together with the unpaid superannuation guarantee amount.
If you don't lodge the SG Statement prior to the ATO finding the under payment or late payment (through Single Touch Payroll, an audit or perhaps complaint from an employee), as explained above, a minimum of 100% of the SGC amount will be applied as a penalty and there is no discretion to have this remitted or revised down. This effectively doubles the amount you will be required to pay and none of it will be tax deductible.
This includes payments of superannuation paid directly to your Self-Managed Superannuation Funds. If you usually pay your contributions in one lump sum towards the end of the Financial Year, but have declared wages on your Activity Statements throughout the year, you won't have paid the correct superannuation guarantee by the 28th day following each quarter throughout the year as required.
If you are aware of any superannuation contributions from past quarters that haven't been paid on time, we would encourage you to lodge an SGC form now. We can organise this for you or alternatively, follow this link to the ATO website which explains the steps to take to lodge the form - https://www.ato.gov.au/forms/superannuation-guarantee-charge-statement---quarterly-form-and-instructions/
If you're unsure as to what salary and wage payments are considered part of ordinary times earnings for Superannuation Guarantee purposes, you might find these tables on the ATO website useful - https://www.ato.gov.au/Business/Super-for-employers/How-much-to-pay/Checklist--salary-or-wages-and-ordinary-time-earnings/
For More Information
For more information surrounding Superannuation payments, or should you have any questions in regarding to maintaining compliance, please contact the Archer Gowland Redshaw office on (07) 3002 2699 | (07) 3221 4004.