Ch-ch-changes are coming to Superannuation, so if you didn’t already know you better stay tuned…
As of the 1st of July 2021 the compulsory Super Guarantee (SG) payment is being increased to 10% (from 9.5%). This means that you’ll need to adjust your payroll systems to pay the increased amount to your eligible employees.
If you don’t pay your eligible employees the correct rate of SG into their super accounts by the quarterly due date, you may be required to pay a Superannuation Guarantee Charge (SGC).
Super Guarantee (SG) payment is being increased to 10% (from 9.5%).
What’s what you ask? To put it simply… It’s something you want to avoid.
The Superannuation Guarantee Charge is an ATO penalty for a late or inaccurate payment. It includes all the SG amounts owing to an employee, PLUS interest AND an administration fee. BUT WAIT THERE’S MORE. You will also need to report and rectify any missed payments by lodging an Superannuation Guarantee Charge Statement with the ATO. Which is more time and admin for you! (or your accountant/bookkeeper).
SO now we’ve covered all that, and given your still here… Just adjust your payroll systems to reflect the new SG payment on July 1 or call us and we will do it for you.
This will ensure you keep your employees and the tax man happy. Which is what we want!
Stay up to date with the latest Superannuation information for employers by visiting the ATO website here.