To avoid additional costs (including the superannuation guarantee charge), you must pay the right amount of super for all your eligible employees by the quarterly due date.
Whether you are paying super weekly, monthly, or quarterly it is important to check that the super guarantee (SG) you pay takes into account changes that started on 1 July 2022.
These were:
- The increase in the SG rate from 10% to 10.5%
- The removal of the $450 per month eligibility threshold when paying SG.
You must have applied these changes to all the salary and wages you paid from 1 July 2022, even if some of the pay period they related to was before 1 July 2022.
All other eligibility requirements for super remain in place. For example, an employee aged under 18 years must still work for you more than 30 hours in a week to be eligible for super.
What you need to do
You need to make sure:
- Your payroll and accounting systems are up to date and include the recent changes to SG
- You have calculated and paid the right amount of SG for all your eligible employees
- You pay SG amounts in full by the due date
You will have to pay the superannuation guarantee charge (SGC) if your total SG amounts for the period 1 July 2022 to 30 September 2022 are not received by your employee’s super funds by 28 October 2022.
If you do not meet your SG obligations, you will have to pay the SGC. You will need to lodge an SCG statement and pay the SGC to the ATO.
This will cost you more than paying the correct SG on time. SGC is not tax deductible. You may also have to pay additional penalties or charges.
