ATO focusing on employers with late super payments
4 September 2019
New reporting technology is helping the ATO identify employers who fall behind on their superannuation guarantee payments.
The introduction of Single Touch Payroll (STP) has opened a new level of transparency for both the employee and the Australian Taxation Office (ATO).
The reporting system requires employers to report payroll activity (including superannuation payments) to the ATO in real time. STP reporting also allows employees to track their wage payments through their MyGov account.
This transparency, along with recent APRA reporting changes (which require all APRA regulated funds to report member contributions within 5-10 days of the the transaction) is giving the ATO greater scope to identify employers who are behind on their superannuation guarantee payments.
In a presentation at the ASFA National Policy Roadshow, the ATO has made it clear that “An immediate focus for us is to use this information to reduce non-payment of super guarantee (SG) by employers – through early detection, on a quarterly basis. “
There are penalties for late or non payment of superannuation
Employers who underpay or fail to pay superannuation before the applicable due date may be liable to pay the superannuation guarantee charge (SGC). So it’s vital to ensure payments are accurate and timely.
It’s equally important for employers to ensure superannuation payments are made into the correct fund nominated by the employee.
The SGC consists of:
- Superannuation guarantee shortfall amounts (including any choice liability calculated on your employee’s salary or wages)
- interest on those amounts (currently 10%)
- an administration fee of $20 per employee, per quarter.
More information regarding this topic can found on the ATO website:
Contact the team at Shakespeare on 08 9321 2111 if you’d like to discuss how the above information may apply to your individual circumstances.
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