Employers pay super guarantee (SG) for eligible employees from the day they start with you. You must make the payments at least four times a year and ensure they are received by your employee’s super fund by the quarterly due dates.
Superannuation Payment Dates
You must pay superannuation for your staff at least four times a year by the quarterly due dates:
|Period||Payment due date|
|1 July–30 September||28 October|
|1 October–31 December||28 January|
|1 January–31 March||28 April|
|1 April–30 June||28 July|
When a due date falls on a weekend or public holiday, it automatically changes to the next business day.
The date super has been paid is taken to be the date that the payment hits the employee’s super account, not the date that an employer pays the super.
It can take a number of days for super contributions to clear through a super clearing house and hit the employee’s account. We therefore recommend paying SG at least one week before the ATO due date to allow enough time for your payments to be processed before the quarterly due dates. At times, your accounting software provider may state the super has to be paid even earlier than one week for processing times. For example, at the end of financial year.
We also recommend making monthly or fortnightly super payments to reduce any risk of late payment. If you are going to do this, make sure the total SG obligation for the quarter is received into your employee’s super fund by the ATO due date.
Members’ personal super contributions
If you arrange with your employee to make post-tax super contributions on their behalf, the payments are referred to as personal super contributions.
Make sure you pay these contributions promptly, in accordance with the employee’s terms of employment and any legal requirement (that is, industrial award conditions).
Members’ personal super contributions don’t count towards your SG obligations.
Penalties for late superannuation payments
Australia’s superannuation law is strict with regards to paying by the due date. Even if you’re late by one day, you can be penalised.
If you don’t pay an employee’s super guarantee on time and to the right fund by the due date, you must pay the Superannuation Guarantee Charge (SGC) and lodge an SGC statement with the ATO. This is the case even if you make the payment later.
The charge is made up of:
• SG shortfall amounts
• interest on those amounts (currently 10%)
• an administration fee of $20 per employee, per quarter.
The real penalty though with paying super late is that super is not just calculated on ordinary time earnings. It is calculated on allowances, overtime etc. That has a huge impact on the super that is therefore payable.
Also importantly, late super payments are not tax deductible.
ATO penalties for not paying super
If you don’t meet your super guarantee (SG) obligations, you may be liable for a range of penalties or charges on top of the Super Guarantee Charge.
These can include:
• Director penalty notices
• Garnishee notices
• Direction to pay SGC
Need further help?
If you require assistance with payroll and superannuation, consider outsourcing your accounts to our bookkeeping service.
As well as bookkeeping, BAS preparation and reporting, our team are payroll experts and offer expertise in:
- Payroll set up
- Payroll calculations and payments
- Payment summaries and end of year processes
- STP set up and reporting
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