Hello,
How are companies penalised for non or under payment of the Superannuation Guarantee ? For example the Superannuation Guarantee Charge or Part 7 penalty? What happens if they don't self report not paying enough super to their staff? Are there regular audits by the ATO to find out ?
Thank you.
Employers report their payroll and super information to us electronically. This must be done on or before each employees pay day. So we get up to date information about each employees super entitlements. Employers must also pay Super to the employee funds by certain dates and the correct amounts. This is also needs to be done a particular way electronically, so we can pick up when they don't pay the right amounts on time.
If they don't pay the correct amounts on time then they must pay the super guarantee charge. This is more than what they would've paid had they paid the correct amount on time. It also means they can't claim a deduction for the amount they have to pay. It's really not a good idea for them to miss any payments because it will end up costing them way more.
Check out our website about our super guarantee compliance approach.
Employers report their payroll and super information to us electronically. This must be done on or before each employees pay day. So we get up to date information about each employees super entitlements. Employers must also pay Super to the employee funds by certain dates and the correct amounts. This is also needs to be done a particular way electronically, so we can pick up when they don't pay the right amounts on time.
If they don't pay the correct amounts on time then they must pay the super guarantee charge. This is more than what they would've paid had they paid the correct amount on time. It also means they can't claim a deduction for the amount they have to pay. It's really not a good idea for them to miss any payments because it will end up costing them way more.
Check out our website about our super guarantee compliance approach.
Thank you Ari for your informative answer.
Hi Ari, our situation is that as a result of a backpay reconciliation of unpaid wages over 6 years, staff have had the accompanying Superannuation Guarantee payments appear as being credited to them on the pay advice. Also , the company never paid super on public holiday and perhaps even week end shift loadings . Would the ATO be aware of this? Does the company have to self report ? Thank you.
Hi @Busdriverssuper,
As @AriATO stated you've super guarantee obligations that legally have to be met.
We'll be able to identify if enough super hasn't been paid.
A question has been asked on this forum where the answer talks about how to calculate superguarantee on back pay, check it out.
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