Employers play a critical role in ensuring the future financial security of employees through paying Super Guarantee (SG) contributions to the right fund and at the correct rate.
The most recent due date for quarterly SG contributions was 29 July. If you’ve missed this date, even by a day, you need to get your super obligations back on track by lodging a Super Guarantee Charge (SGC) statement and paying the SGC to the ATO by 28 August. The ATO takes non-payment of SG seriously.
What is the SGC
The SGC statement lets us know of any missed or late SG payments. The SGC amount is paid to the ATO and includes more than the regular super contributions. Unlike on-time SG contributions, you can’t claim a tax deduction for the SGC. It includes:
- SG shortfall (based on salary and wages, not ordinary time earnings)
- choice liability (capped at $500)
- nominal interest (10% per annum)
- administration fee ($20 per employee, per quarter).
Common errors for SG payments
If you’ve incurred SGC and not sure why some common errors include:
- paying the SG contribution late or not at all
- not paying the SG contribution in full
- not paying the SG contribution to the right super fund.
Remember, if you use a commercial clearing house, you need to allow time for payments to reach your employee’s super fund by the due date. The due date is the date payments are received by the super fund, not the clearing house.
Tips to complete SGC statement
If you need to complete an SGC statement because you’ve missed the 29 July deadline, here’s some tips:
- follow our guide to completing the SGC statement
- use the latest version of the SGC form
- provide full employee identifying information
- when you lodge online with us, you don’t need to sign the declaration.
Work with us to get back on track
We understand there may be pressures on your business. Although by law we can’t extend the due date of SG, if you’re behind or at risk of falling behind with your SG obligations, contact us as soon as possible so we can work with you to get you back on track.
If you need help to work out how much super you need to pay for your employees and eligible independent contractors:
- use our super guarantee contributions calculator
- speak with your registered tax professional.
You can find more information on our website or you can watch our helpful videoExternal Link.
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