Super Penalties for Late Super

Brisbane Business Accountant - avoiding penalties for late super

Super guarantee contributions are due by the 28th day after the end of each quarter. Employers who don’t make their payments on time are penalised severely. There’s a double whammy – extra charges and interest, and no tax deductibility.

Note well: This is not linked to the timing of the BAS payment, and you can’t leave it until you do your end-of-year tax return.

Let’s start from the beginning: If you pay wages (including some contractors), you are required to pay super guarantee contributions to your employees’ super funds by the due date. The fund must receive the payment by this date.

Super contributions must be made for all wages, including salary or wages paid to owners, shareholders, or directors of a company or other trading entity.

For wages paid during the 2013-2014 financial year, the amount of super which must be paid is a minimum of 9.25% of ordinary time earnings (with some variations). This rises to 9.5% for the year commencing 1 July 2014.

If you do not pay minimum super contributions by the due date, you must pay the super guarantee charge and lodge a Superannuation guarantee charge statement – usually 1 month after the super payments were due. The super guarantee charge is basically the same as the super you should have paid, plus there will be penalties.

The penalties for late payment are: the super guarantee charge is not tax deductible, plus there will be admin charges and interest applied by the ATO, plus there may be late penalties, up to 200% of the amount of super unpaid.

If you would like to make sure you are meeting your superannuation, or other employment obligations, or if you would like to discuss strategies to keep your obligations under control, contact your Brisbane Business Accountant on 07 3822 7201.