Have you experienced being late on your super payments? Sometimes, unexpected things happen. There may be things that we have not done because of unforeseen errors or conditions. For example, you have automated a system to pay the super payments for you. We have become dependent on technology to do the things that we are supposed to do. However, there can be a possibility that this system fails due to a bug and bounces back to you without you knowing.
Whatever the reason is – whether it be a failed automation system or a human error in your company – it is essential to know how to handle the situation. There can be harsh penalties if you ignore your late payment. If it is your first time committing this mistake, there is no need to worry. Here, we collate the best advice reliable tax agents in Sydney recommend you to do.
Check the date.
Before you start panicking about not being able to pay your super payments on time, make sure to check the dates. You have to be sure that you have the correct quarters to pay the super. For example, you need to pay for the first quarter of July and September. Check the date and see if you are beyond the payment due, which is on the 28th of the next month, i.e., October 28th.
Next, check if the 28th falls on a weekend. The Tax Office offers an extension of the payment towards Monday if the due date is on the weekend.
Check previous payments.
Superannuation payments are generally 9.5 per cent of an employee’s earnings. If an employer has paid more than that in a quarter, then the extra payment can be directed towards the next quarter. Most tax accountants in Mascot will recommend that you check your previous payments and see if you have paid extra.
That way, there is a possibility that the particular super you have missed paying has already been paid. If not fully, there is still the possibility that the super to be paid is less than the actual amount.
Confirm employee status.
If the payment for the superannuation is in respect of a former employee, the tax office may allow an extension of up to four months. When the payment is paid within four months, you can still get a tax deduction for the super. Another factor that you also need to confirm is the employee’s monthly earnings. If the employee is being paid below $450 a month, there is no need for a superannuation payment.
That is because this salary is below the minimum salary necessary for the payment. The salary does not trigger tax-deductibility rules. It also does not trigger the Superannuation Guarantee rules either.
Calculate SGC.
Let us assume that all measures fail and you are late in your super payment. You should then proceed in calculating the Superannuation Guarantee Charge, or SGC for short. To do this, you have to use the SGC calculator tool provided by the Taxation Office. You can find this tool on their official website.
The tool will ask for certain information from you that is necessary to calculate the SGC. It includes Tax file number, Australian business number, the employee information in question, and more. Once you are done, you can click on “Calculate” to come up with the SGC. It can also then generate a complete spreadsheet for you which serves as the SGC statement.
Another way to come up with the SGC is by using a spreadsheet file provided by the Taxation Office. It can allow you to generate a PDF version of the SGC statement. You need to be proficient with the tool. Familiarise it and follow the instructions which can be found on the first sheet of the file.
Lodge SGC Statement.
Once you have the SGC statement, you need to lodge it to the Taxation Office via the Business Portal. First, attach the completed spreadsheet to a new portal message. Next, you have to select “Superannuation” as the topic of the message. Then, select “Lodge SGC statement” as the subject of the message.
Options in SGC statement
When having late payments, you can do the following things: use late payment offsets or carry your late payment forward. When using a late payment offset, this reduces the amount of SGC you need to pay. To do so, you must have already made the payment to your employee’s super fund, made the payment before the date your SGC assessment was made, and lodged your late payment offset election with the office within four years of your original SGC assessment date.
You can also carry forward your late payment in the quarter it was paid or in a future quarter. You can do this if it is for the same employee and the start of the quarter is within a year after the payment date.
Bottomline
If this is too much for you to do, you can let the professionals and tax agents in Sydney handle all these things for you. Have you been searching the internet for ‘tax agent near me’? Stop wasting time and trust Practical Accountants.
At Practical Accountants, we provide seamless and stress-free services for you to avoid late super payments and other accounting or bookkeeping problems.
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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