To make sure you are not hit by additional charges, employers need to make sure that they are paying the correct amount of super for all eligible employees by the quarterly due date. For the July to September 2022 period is due by 28th October 2022.
It is important to remember that there were Super Guarantee changes that commenced on the 1st July, which means that The rate has gone from 10% up to 10.5%, and that the $450 per month eligibility threshold when paying Super has been removed.
Other requirements such as an employee under 18 years old needing to work over 30 hours/week to be eligible for super still remain. See the ATO’s Super Guarantee Eligibility Tool here.
Super payments are only tax deductible if paid before the due date.
If you miss making a super guarantee payment on time and to the right fund, you meet legal obligations by lodging an SGC statement by the due date and paying the SGC to the ATO.
The superannuation guarantee charge is made up of:
- the super guarantee shortfall, made up of:
- super calculated on salary and wages (including any overtime)
- any choice liability, based on the shortfall and capped at $500. (More information on choice liability on the ato website here)
- nominal interest of 10% per annum (accrues from the start of the relevant quarter)
- an administration fee of $20 per employee, per quarter.
The SGC Charge is not tax deductible.