Super Guarantee Charge

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Lodge on time to avoid the Super Guarantee Charge

If you’re anything like us, you are probably wondering how we have gotten to the end of January already!
So here is your friendly reminder: your December 2021 quarterly payment of Super Guarantee for employees is due TODAY!

It is important to make your payments today to avoid paying the Super Guarantee Charge and having to lodge a Super Guarantee Charge Statement.

What is the Super Guarantee Charge?

If you do not pay an employee’s Super Guarantee on time or to the right fund you are required to lodge a Super Guarantee Charge statement and pay the Super Guarantee Charge to the ATO.

The Super Guarantee Charge is calculated on an employee’s salary and wages, which may be greater than their ordinary time earnings and is made up of:

  1. The super guarantee shortfall (the contributions not paid or paid late) 
  2. Nominal interest of 10% per annum, and
  3. An administration fee of $20 per employee, per quarter.

Is the Super Guarantee Charge deductible?

No. The Super Guarantee Charge is not tax deductible. Directors of companies must be aware that they can be held personally liable for a penalty equal to the unpaid amount.

When is it due?

The due dates for paying Super Guarantee and the Super Guarantee Charge are provided below:

 

Quarter

Super guarantee payment due date

Super guarantee charge and statement due date

1 July – 30 September

28 October

28 November

1 October – 31 December

28 January

28 February

1 January – 31 March

28 April

28 May

1 April – 30 June

28 July

28 August

(For due dates that fall on a weekend or public holiday, you can make the payment and lodge the SGC statement on the next business day.)

 

What if I am late?

If you miss the due date for lodgement of the Super Guarantee interest will accrue until you lodge your Super Guarantee Charge Statement. Nominal interest of 10% per annum is part of the Super Guarantee Charge and, by law, cannot be reduced or waived.

When eligibility requirements are met, late super payments can be used to offset the Super guarantee Charge, pay super in the current quarter or put the payment towards future super payments (limited to a period no more than 12 months from the beginning of the quarter).

By lodging your Super Guarantee Charge statement on time, you will be able to access ATO support services that assist with payment. If you cannot pay in full, but you lodge your Super Guarantee
Charge statement by the due date, you may be able to set-up a payment plan with the ATO to pay in instalments.

How to calculate and lodge the Super Guarantee Charge Statement?

There are 2 ways to lodge your SGC statement:

  • Use the SGC calculator in the ATO Online services for business or Online services for
    individuals. The statement will also calculate your liability.
  • Complete the SGC statement spreadsheet and lodge using Online services for business or
    Online services for individuals. We have provided the link below

https://www.ato.gov.au/uploadedFiles/Content/SPR/downloads/NAT9599_SGC_statement.xls

 

Author

 Emma Russoniello