The ATO currently requires any employer not meeting their obligations to lodge an SGC Statement Report and rectify the error by paying the outstanding amount. If you do not voluntarily engage with the ATO by lodging the required report, the ATO will potentially take a more aggressive approach in the collection of unpaid amounts, forcing compliance and administering harsh penalties.
If you are found non-compliant through an ATO audit (not by voluntary disclosure) you could be up for penalties of 200% of the SGC outstanding, plus general interest charges on the total outstanding amount.
Further to this, the SGC and late superannuation guarantee payments are not tax deductible.
Haven’t paid your obligations? Well it’s your lucky – amnesty!
The ATO have introduced a Super Guarantee Amnesty period (24/05/2018 – 23/05/2019). This is an opportunity for you to catch up on your obligations, without incurring any hefty fines and you can still claim a tax deduction for the late payments.
Don’t think you are behind? Perhaps this is a good time for a payroll audit to ensure you are paying according to the appropriate awards and that your superannuation calculations are correct. Don’t forget any contractors you pay may also meet the definition of an employee for super guarantee purposes: make sure you include these types of contractors in you payroll audit to ensure you capture the total SG shortfall.
To take advantage of the amnesty there are a couple of things you need to do.
Under the amnesty, employers that are behind will have to pay:
Confused? We get it, it’s a heavily legislated area and reading about it is a sure cure for insomnia! If you aren’t sure about where you are with your super guarantee obligations, give us a call, we can perform an audit or show you where to start if you are behind. We can assist in filling out the correct forms, calculating SGC charges and help you to implement a plan to keep you up to date in the future.