Can you think of a situation where you must fill out a four-page document, pay interest and a fine just because you were one day late in paying a business expense? Because let's face it, reality is you just had too much to do on your property and just "didn't get to it".
Unfortunately, on top of this, you are also denied a tax deduction for the business expense, the interest payment and the fine.
This is exactly what will happen under the current tax law if you are late in paying your employees 10 per cent superannuation entitlements on time. Plus, with this particular piece of taxation legislation the ATO has no ability to extend the due date for payment.
Under the current rules, your employee's superannuation payment is due by the 28th day after the end of each of the quarter ending September, December, March and June.
We are all time poor these days and the thought of doing additional paperwork is not appealing to anyone. However, once you have missed the deadline to pay your employees superannuation guarantee payment, you have no option but to complete the superannuation guarantee form. In addition to your time, or your accountants fee if you get them to prepare the form, there will be interest charged at 10pc and an administration fee of $20 per employee.
If you ignore the non-payment, the penalties and interest continue to accrue. Unlike other tax liabilities, there is no cut-off time for when the ATO can come and review your super obligations and payments. With single touch payroll reporting and increasing complaints being received by the ATO from employees for the non or late payment of their superannuation, this issue is not going to disappear any time soon.
If you would like help in meeting your employee obligations, contact one of the tax experts at HHH Partners.
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