Payroll Processing Doesn’t Mean Super Has Been Paid
With Payday Super just around the corner the Australian Taxation Office (ATO) is paying closer attention to employer superannuation obligations through information reported under
Single Touch Payroll (STP).
One common mistake businesses are making is assuming that once payroll has been processed, employee super has also been paid. Unfortunately, that’s not always the case.
Why It Matters
If super contributions are not received by an employee’s super fund by the quarterly due date, employers may have to pay the Super Guarantee Charge (SGC).
The SGC can be much more expensive than simply paying the super on time because it may include:
- The unpaid super amount
- Interest charges
- Administration fees
- Loss of the tax deduction normally available for super contributions
Even paying super a few days late can create problems.
Common Reasons Super Is Paid Late
Some of the most common causes are:
- Assuming STP reporting automatically pays super
- Delays in approving super payments
- Cash flow issues
- Incorrect employee super fund details
- Payroll software setup errors
- Failed or rejected super payments that are not followed up
What Employers Should Do
To help avoid penalties and extra costs:
- Pay super well before the due date
- Make sure super payments are actually processed and funded
- Check payment confirmations and reports regularly
- Reconcile payroll records with super payment records
- Review payroll software settings from time to time
- Ensure payroll staff understand that processing payroll is not the same as paying super
Just remember that starting 1 July 2026 you will be required to pay super on the same day as your wages are paid to your employees.
Author
Natasa Briffa