Super guarantee obligations for employers

Super Guarantee Obligations for Employers: Tips for Hospitality Owners

Your focus may be on your guests, but don’t forget to book in regular time for your business obligations.

It’s important to keep your super guarantee (SG) obligations in check. Forgetting obligations, like paying SG for your workers, can end up being very costly for your business.

Make sure you meet the quarterly SG due dates are and pay at the correct SG rate. The current SG rate is 10.5%, but this will increase to 11% on 1 July.

Not paying super for all your eligible workers in full, on time and to the correct fund will mean more administration work for you and additional fees and charges for your business.

Check out resources such as the ATO’s super obligations for employer checklist and training course which provides further information and education on meeting your SG obligations.

Example: Missed super guarantee payments

Imara owns and runs a bed and breakfast that employs 12 people. She does her best to pay her employees’ super in full, but she missed the SG due date last quarter.

  • Imara missed the quarterly due date of 28 January and paid super contributions to her eligible employees on 9 February.
  • As Imara paid her employees’ super late, she had to pay an additional charge, known as the SG charge (SGC) to us and lodge an SGC statement. The SGC is more than she would’ve originally paid, included fees and interest and is also not tax deductible for her business.
  • Imara couldn’t pay the SGC in full; but she still needed to lodge the SGC statement before 28 February.
  • By lodging the statement within one month of the due date, she avoided paying a significant penalty. This penalty could have been up to 200% of the total SGC.
  • Imara then claimed a late payment offset for all late payments she made to her employees’ super funds, reducing the amount of SGC she needed to pay.

Remember, registered tax agents like the team at Cotchy can help you with tax and super. Contact us today!


Source: ATO Newsroom

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