If you have missed a super payment for your employees or haven’t paid it on time (or to the correct fund). In that case, you must lodge the superannuation guarantee charge (SGC) statement and pay the SGC to the Australian Taxation Office.
As an employer, you must make super payments for those employed under you into their nominated super fund. As of 1 July 2021, the super guarantee rate has increased to 10%.
Late super payments (if eligibility requirements are met) may be used to offset the SGC, pay super during the current quarter or put the amount towards future super payments. The SGC is not tax-deductible, so you will need to take that into account as an employer as it is not a super contribution payment that you can claim back on your tax.
Missed Super Guarantee Rate Payments
A missed super guarantee payment might occur because of circumstances beyond your control or a situation that arises. If you fail to pay an employee’s super on time or into the correct nominated super fund, you must:
- Lodge a superannuation guarantee charge statement
- Pay the super guarantee charge
Unfortunately, you cannot extend the quarterly due date for super guarantee payments. To avoid penalties, you will need to ensure that you have lodged the SGC statement (or had us help you with the process) within a month of the quarterly due date and the SGC for the outstanding super.
Late Super Guarantee Payment Options
If you have made a late super payment to an employee’s super fund, you may be able to:
- elect to claim the late super payment offset, which will reduce the SG shortfall and nominal interest of the SGC.
- Pay super in the current quarter.
- Put the payment towards future super payments (limited to no more than 12 months from the beginning of the quarter).
If you’re concerned that you may not be able to meet the super guarantee payments required by you by law, it might be best to start a conversation with us as soon as possible, as we might be able to assist.
