Superannuation, or ‘super’, is more than just a retirement fund for your employees; it’s a compulsory contribution supporting their future financial security. Understanding and adhering to the Superannuation Guarantee (SG) requirements is crucial for all employers. Let’s break down what you need to know.
Superannuation Guarantee: The Basics
Every employer is required to pay super for all eligible employees. This payment, known as the Employer Superannuation Guarantee (SG), must reach the employee’s fund by the quarterly due dates to avoid the Super Guarantee Charge (SGC).
When and How Much?
Super payments are due at least four times a year, based on the following quarterly periods:
- Q1: 1 July – 30 September, due by 28 October
- Q2: 1 October – 31 December, due by 28 January
- Q3: 1 January – 31 March, due by 28 April
- Q4: 1 April – 30 June, due by 28 July
If a due date falls on a weekend or public holiday, ensure the payment reaches the fund by the next business day.
Flexibility in Payments
While quarterly payments are the minimum requirement, you can make contributions more frequently, such as fortnightly or monthly. Just remember that the total SG contribution for the quarter must be paid by the due date.
Missed or Late Payments?
If payments are missed or late, you must lodge an SGC statement and pay the SGC to the ATO. Unfortunately, missed or late payments lose their tax deductibility.
Clearing Houses: Streamlining the Process
A clearing house can take the hassle out of distributing super contributions to various employee funds. However, it’s crucial to remember that the contribution is considered ‘paid’ only when the super fund receives it, not when the clearing house does. To avoid delays, familiarise yourself with the processing times of your clearing house and plan accordingly.
For a worry-free experience, ATO’s Small Business Superannuation Clearing House is a reliable choice, recognising payments as ‘paid’ on the date received by them.
In Summary
Adhering to super payment due dates is essential for keeping your business compliant and supporting your employees’ financial well-being. By planning ahead and utilising the available resources, you can ensure that super contributions are made accurately and on time.
Stay informed, stay compliant, and let’s secure a brighter financial future for your employees together.
Source: ATO – Super payment due dates
