Employers that will struggle to pay an employee's minimum superannuation guarantee (SG) amount on time and to the right fund, must remember to pay the superannuation guarantee charge (SGC) this tax time, says the ATO.
"We understand that paying your employees' super may sometimes fall by the wayside," the ATO said. "But it's important you know how to get back on track."
Businesses that missed the due date or didn't pay the correct amount of SG for the quarter just ended would need to lodge an SGC statement to the ATO by 30 May (as 28 May falls on a Saturday) to disclose any missed or late super. This included paying the SG charge to the ATO.
"Unlike paying SG for your employees, the SG charge is calculated on an employee's total salary and wages (including overtime and some allowances) and includes interest and an administration fee of $20 per employee, per quarter," the ATO said.
The ATO said the easiest option to work out the SGC was to use the SGC statement spreadsheet and calculator.
"Use the SGC calculator in online services for business or online services for individuals. The statement will also calculate your liability," the ATO said.
"Businesses can complete the SGC statement spreadsheet and lodge using online services for business or online services for individuals,"
Employers could also use the super guarantee charge statement and calculator tool to generate a PDF version of the statement. This could be printed and mailed to the ATO.
"However, we don't recommend this option as there is a higher chance for mistakes and takes much longer to process," the ATO said.
The ATO said even if businesses were unable to pay in full, they should still lodge an SG charge statement on time and engage with the tax office.
"When you lodge on time, you can access our support services and you may be able to set up a payment plan to pay in instalments," the ATO said.
If businesses request an extension of time to lodge an SGC statement, the general interest charge (GIC) would apply from the deferred payment request until the SGC is paid in full.
"You must make the request before the due date by either writing to us and stating why you need an extension and phoning us on 13 10 20," the ATO said.
"We prioritise the collection of unpaid SGC debts. We'll work with you to address outstanding amounts but if you don't engage with us, we'll take stronger action which can include additional penalties.
"If an employee reports you for unpaid super, we'll start an investigation on their behalf. We'll keep them informed of the investigation and the progress of our debt recovery actions.
"If we find or reasonably suspect that you haven't met your obligations, we may inform all your affected employees and any former employees of any superannuation guarantee shortfall."
