School holidays, Christmas holidays, Test Cricket Ashes series, Australian Open Tennis, AFLW, COVID – there is so much going on at the moment, isn’t there?
With so many distractions at this time of the year for business owners, we need to make sure that we keep focusing on the obligations that we have to attend to, especially the compliance reporting and payment due dates!
Under the Superannuation Guarantee (‘SG’) scheme, employers are required to make quarterly contributions on behalf of their employees.
From 1 July 2021, the minimum contribution required is 10% (up from 9.5%) of an employee’s Ordinary Time Earnings base, up to a maximum quarterly contribution base of $58,920 for 2021/22.
Employers are reminded that the due date for making SG contributions for the December 2021quarter is 28 January 2022.
Now, if you do not pay an employee’s super guarantee on time and to the right fund, you must lodge the superannuation guarantee charge (SGC) statement and pay the SGC to the ATO.
The SGC is not tax-deductible!
If you made a late super payment to an employee’s super fund, you may be able to use it to:
apply the offset to reduce the shortfall and nominal interest component of the SGC
pay super in the current quarter
put the payment towards future super payments (limited to a period no more than 12 months from the beginning of the quarter).
If you are experiencing financial difficulties and don’t believe you can meet this SG obligation by 28 January 2022, please contact Shannae Hewett on 55612643 to schedule a time to discuss your options with our experts.
No one likes to pay extra, especially when it comes to the ATO.
Have a great day!
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