We recently provided some simple checks for super success. Now, we’re highlighting some common mistakes that you can share with your employer clients to help them stay on top of their super guarantee (SG) obligations.
Mismatching information
If payments aren’t going through to the super fund, your employer client will need to contact their employee to check they've provided the correct details. Super funds will reject payments when the details do not match. This includes incorrect name, date of birth, TFN or super fund account information. To avoid the super guarantee charge (SGC), employers can make an on time SG payment into their default super fund so they still meet their obligations.
Not paying the minimum SG amount
The SG rate is currently 11.5% of an eligible workers' ordinary time earnings and this is the minimum required by law. If employers don’t pay the required SG amount by the quarterly due date, they must lodge an SGC statement and pay the SGC to us. If they are unsure how much to pay they can use the SG contributions calculator.
Not paying by the due date
Super contributions must be paid at least 4 times a year by the quarterly due dates - the next due date is on 28 October. If employers are using a clearing house, they need to make sure they allow enough time for the payment to reach each of their employees' funds.
Contributions are only considered paid once they reach their employees' super funds.
If they miss a due date, make a late payment or don't pay the full amount, they must lodge an SGC statement and pay the SGC to us to avoid paying more in interest and penalties. Our guide on completing the SGC statement can help get them back on track.
Paying super is not optional, and your clients meeting their obligations means they are contributing to the financial future of their workers.