There are a couple of significant matters that we feel need to be pointed out to all employers as we get close to the new financial year.
Rise in Superannuation Guarantee (SG) Rate
If you are an Employer, you need to factor in an extra 0.5% SG when you do your Quarterly SG payments (from 9.5% to 10.0%). This applies for SG payments relating to earnings paid to employees from 1 July 2021.
It is important to know that, as an employer, if you do not change the rate and get it wrong, you cannot simply make it up next time.
You would be forced to complete an SG shortfall statement, which involves paying the shortfall, plus a penalty, plus not getting a tax deduction for it!
And this brings me to the second matter.
Single touch payroll and SG Audits
With single touch payroll now compulsory for all employers, the ATO have real time information about individual earnings and related SG payments.
If SG payments are not accurate or on time the ATO know instantly.
This is likely to result in a penalty notice from the ATO. We have already seen a couple of these come into our office.
The due date for SG payments is 28 days after the end of a quarter.
The monies must be received by the superannuation fund by this time. Therefore, we recommend payments are made well in advance of this.
Note that the SG system is different to the BAS system.
These changes have been a long time coming and we get the feeling that the ATO will seek to penalise transgressors.
If you wish to discuss more about SG and the changes upcoming, please contact your usual Johnsons MME advisor.