Late Super Payments: What You Should Do First
Have you ever been late paying super? It happens more often than many business owners expect. Sometimes systems fail. At other times, a simple human error causes the delay. For example, you may rely on an automated payment system and assume everything is running smoothly. If that system fails without warning, the payment can bounce back without you noticing.
No matter the reason, it is important to act quickly. Ignoring a late super payment can lead to harsh penalties. If this is your first time dealing with the problem, do not panic. Below are practical steps that tax agents in Sydney often recommend.
Step 1: Check the Date
Before you worry, check the payment dates. Make sure you are looking at the right quarter. For example, the first quarter covers July to September. The payment for this period is due on the twenty-eighth of the following month, which is October twenty-eight.
Also check if the due date falls on a weekend. If it does, the Tax Office gives you until Monday to make the payment.
Step 2: Review Your Previous Payments
Super payments are usually nine and a half percent of an employee’s earnings. If you paid more than required in a previous quarter, the extra amount may roll over into the next one. Many tax accountants recommend reviewing past payments before doing anything else.
If you have already paid more in an earlier quarter, part or all of the missed payment may already be covered. This can reduce what you still need to pay.
Step 3: Confirm Employee Status
If the payment relates to a former employee, the Tax Office may give you up to four months to make the payment and still let you claim a tax deduction. You should also confirm whether the employee earns enough to qualify for super. Employees earning below four hundred fifty dollars a month do not meet the minimum requirement for super.
Because of this, a missed payment may not be required at all.
Step 4: Calculate the SGC
If the payment is late, the next step is to calculate the Superannuation Guarantee Charge (SGC). You can do this through the calculator tool on the Tax Office website. The tool will ask for details such as your tax file number, Australian business number, and the employee’s information. After entering the details, you can select “Calculate” to generate the SGC. The tool also creates a spreadsheet that becomes your SGC statement.
Another option is to download the spreadsheet form from the Tax Office and fill it out manually. Follow the instructions on the first sheet to create a PDF.
Step 5: Lodge the SGC Statement
Once you complete the SGC statement, you can lodge it through the Business Portal. To do this, attach the spreadsheet to a new portal message. Choose “Superannuation” as the topic and “Lodge SGC statement” as the subject.
Step 6: Understand Your Options
When you pay late, you may be able to use a late payment offset. This option reduces the SGC you owe. To qualify, you must already have paid the super to the employee’s fund, made that payment before the date of the SGC assessment, and lodged your offset election within four years of the assessment.
You can also carry the late payment forward to another quarter for the same employee, as long as the new quarter begins within twelve months of the payment date.
Let Professionals Handle It
If all of this feels like too much, a tax agent in Sydney can handle it for you. Instead of searching online for “tax agent near me,” speak with Practical Accountants.
We provide clear, stress free support to help you avoid late super payments and other accounting issues.
Discuss your needs with our tax agents in Sydney, and we will help create solutions to improve your current processes. Call us now on +61280808070 or email us at info@practicalaccountants.com.au.
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