The ATO has advised that it will be increasing its “proactive” management of super guarantee reviews and audits in this financial year. And with the increase in real-time software usage and data matching between agencies such as banks and super funds, it is now easier for the ATO to receive better and more timely information – meaning that any late lodgements or breaches are more readily identifiable.
What does this mean for you?
If you pay your employees super on time and in full, then you have no reason for concern. However, if this is not always the case then you could be on the ATOs radar. Scarily, the ATO has also advised that penalties of up to 200% (yes, 200%!!) per employee may be levied if you do not meet your obligations.
We’ve put together some tips to ensure that you meet your super payment obligations:
- Consider changing how often you pay super – paying with each pay run (or at least monthly) will ensure that you don’t miss any important deadlines AND it may even assist your cashflow
- Enable your bookkeeping software to automate the process. Most up to date software programs have a feature that can assist you
- If using a super clearing house, then be mindful of dates – super must reach your employees super account before the due date. It’s not just sufficient to make the payment to the clearing house by the due date. We recommend making payments 2 weeks prior to the due date to ensure it has enough time to reach the applicable super fund
- If you do miss a cut-off date, then ensure you complete and lodge the applicable Superannuation Guarantee Charge paperwork as soon as possible
If you have any questions regarding your super obligations please don’t hesitate to speak with your accountant.