I just confused about point 2 about the 10% interest. it will finally pay to employee or ATO?
The superannuation guarantee charge is made up of:
Interest component ends up being paid to employee's super fund as part of SGC contribution.
Interest component ends up being paid to employee's super fund as part of SGC contribution.
I am also confused by this component. If it is recognised as interest in the benefit of the employee whose super was paid late then why is the interest amount charged beyond the date of the super payment. I ran the super payments through Xero 2months late but did not lodge the SCG statement for another 6months as I was not aware it was required. The interest is calculating to be charged for the additional 6months which seems to be a red tape punishment for the employer rather than to remedy potential missed investment benefits for the employee. I understand the interest charge for the period that the super was late but not for the lodgement of the ATO form...
Hey @TaxSmith08,
It sounds like you're referring to the 'Part 7 penalty'.
The Part 7 penalty is not a penalty on the employer for failing to meet their SG obligations. It is a penalty on the employer for not promptly disclosing to the Commissioner where they have an SG shortfall. No penalty applies where the SG statement is lodged before the SGC lodgment due date.
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