If you’ve missed the latest Super Guarantee (SG) deadline, it’s important to take action, get back on track, and stay on top of your super obligations by lodging a Super Guarantee Charge (SGC) statement.
As an employer, you play a crucial role in securing your employees’ financial futures by making timely and accurate Super Guarantee (SG) contributions to the appropriate fund.
The most recent deadline for quarterly SG contributions was July 29th. If you missed this deadline, even by just a day, it’s essential to correct the situation by lodging a Super Guarantee Charge (SGC) statement and paying the SGC to the ATO by August 28th. The ATO takes missed SG payments very seriously.
What is the Super Guarantee Charge (SGC)?
The SGC statement is your way of notifying the ATO about any missed or late SG payments. The SGC is more than just the missed super contributions—it includes additional costs, and is not tax-deductible. The SGC comprises of:
- SG shortfall (calculated on salary and wages, not ordinary time earnings)
- Choice liability (capped at $500)
- Nominal interest (10% per annum)
- Administration fee ($20 per employee, per quarter)
Common SG Payment Mistakes
If you’ve received an SGC and aren’t sure why, some common errors include:
- Paying the SG contribution late, or not at all
- Not paying the full SG contribution
- Paying the SG contribution to the wrong super fund
Keep in mind, if you’re using a commercial clearing house, you must allow sufficient time for the payments to reach your employees’ super funds by the due date. The deadline is when the payment is received by the super fund, not when it’s sent to the clearing house.
Tips for Completing Your SGC Statement
If you need to complete an SGC statement to stay on top of your super obligations, because you missed the July 29th deadline, here are some tips:
- Follow the ATO’s guide for completing the SGC statement
- Use the latest version of the SGC form
- Provide complete employee identification details
- If you lodge online, there’s no need to sign the declaration
Getting back on track to stay on top of your super obligations
We understand that running a business comes with pressures, and while the ATO cannot legally extend SG due dates, they can work with you if you’re behind or at risk of falling behind on your SG obligations. It’s important to reach out as soon as possible to get back on track.
If you need help calculating how much super to pay for your employees or eligible independent contractors, you can:
- Use the Super Guarantee Contributions Calculator
- Consult with your registered tax professional
For more detailed information, visit the ATO’s website or check out their helpful video.