Super Guarantee – Missed, underpaid or paid super late?

The ATO have put out a statement regarding the Super Guarantee and the impact of COVID-19 on businesses and the ability to pay the Super Guarantee. The message is clear – there will be no lenience. We urge you to read the information below and get serious about meeting your superannuation obligations as employers. 

Statement from the ATO

We understand your clients may continue to experience the impact of COVID-19 in the new year, and they may have missed regular super guarantee (SG) payments, paid late or not paid in full.

By law, we can’t extend the due date to pay super. If your clients missed the 28 January due date or underpaid the super guarantee for the quarter ended 31 December 2020, to meet their obligations and avoid penalties they must lodge a Superannuation guarantee charge statement to us by 1 March 2021, even if they can’t pay in full. We can work with you to set up a payment plan that suits your clients’ circumstances.

You can lodge a Superannuation guarantee charge statement for your clients through Online services for agents. Complete the spreadsheet version of the statement and send it to us as an attachment using the Mail function.

The superannuation guarantee charge for late or underpaid super is different to regular SG contributions. It is made up of:

  • SG shortfall amounts
  • interest on those amounts (currently 10%)
  • an administration fee of $20 per employee, per quarter.

It is important to lodge the Superannuation guarantee charge statement on time. Significant penalties can apply if a statement isn’t lodged by the due date.

Next steps:

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Should you need assistance with these mandatory payments please contact us so we can assist you in setting up a payment plan with the ATO.

We also encourage all of our business clients to consider completing the ATO Super Guarantee online course which will assist you in understanding more clearly the requirement for paying Superannuation to your employees.

Below is the link to the ATO Super Guarantee Course, which will take approximately 2 hours to complete according to the ATO. You will then have to do an assessment and achieve a pass rate is 80%. Upon completion, you will receive a Certificate confirming your completion of this course.

If you have any concerns about the implications of Super Guarantee payments for your business, please contact the HCG team to discuss your situation.