The ATO have started matching Single Touch Payroll data to determine if employers have been paying their Super on time. Large penalties can be issued for even being a few days late so it is more important than ever to pay on time.
Super guarantee payments are required to be paid within 28 days of the end of the quarter. That means super is due by the following dates:
Note that it takes a few days for payroll software to process super payments so payments should be processed comfortably before the due date to ensure they are paid on time.
Where contributions are not paid before the due date the following penalties can apply:
- Nominal interest (10%)
- An administration charge of $20 per employee, per quarter
- A penalty of between 100% and 200% of the unpaid amount
- Penalties and payment of the super shortfall are not tax deductible
It is also generally good to pay your June quarter contributions before the 30th of June (depending on your circumstances) so that you can claim a tax deduction in the current year. If you wait to pay until July, the deduction is not allowed until the year after. Outstanding Super payable at 30 June cannot be claimed as a a tax deduction in that year. Note that if you pay five quarters in one year you may cause issues for some of your employees if it makes them breach their concessional contributions cap ($25,000 for 2021, $27,500 for 2022).
It is also important to pay super for related party employees on time as the same rules and penalties apply.