For both employers and staff: The superannuation guarantee charge legislation is very tough – businesses can be charged extra penalties and lose the tax deduction if the super payment is even one day late.
We ask our clients to pay super either monthly, or with each pay period. This irons out the business cash flow to a more even outflow. This way, you will almost never be late with a payment, and for many businesses it’s easier to pay super as you go, rather than trying to find a large sum at the end of the quarter and possibly paying late if there’s a hiccup in your admin arrangements.
Losing a tax deduction for super is a very harsh and strict tax rule if paid late – for the tiny amount of interest you may have foregone by paying as you go instead of keeping the cash at the end of the quarter, the penalties for possibly paying late in our opinion, far outweigh the disadvantages.
Again, let this be a reminder for employees to check if your super is on track using your online superannuation fund login, and for employers to make absolutely sure you pay to the super fund well ahead of the 28 October 2021.
