What is Superannuation Guarantee?

 

Superannuation Guarantee is the requirement of the employer to pay 11% superannuation into the employees nominated superannuation fund till 30 June 2024, then will increase to 11.5% from 1 July 2024 to 30 June 2025, then increasing to 12% from 1 July 2025.

 

Superannuation guarantee is calculated as 11% of ordinary times earnings. It is payable by the 28th day of the month after the end of a financial quarter.

 

Penalties of late payment?

 

There are significant penalties for non payment and late payment of super. These include

 

1. No tax deduction for the amounts paid late

 

2. Late interest payable to the superfund

 

3. General interest charges payable to the ATO

 

4. Administration charges for the management of the late payment by the ATO

 

5. Other penalties as decided in any ATO audit/review.

 

How we can help

 

As you can see the lodgement and payment of superannuation on time is an important one. Jeffkins Accountancy - Melton small business advisors are experts in assisting small business meet their obligations. If you would like help or to discuss your employer obligations, please contact our offices.