Superannuation payment deadline upcoming for September Quarter
As an employer you have an obligation to make 9.5% superannuation guarantee contributions on behalf of your eligible employees. Generally, you are required to pay super if you pay an employee $450 or more (before tax) in a calendar month.
Superannuation payments – SuperStream
Starting from 1 July 2015, small employers (19 or fewer employees) must begin their adjustment to the new system of SuperStream over the course of a year, while large employers (20 or more employees) should have already finished their transition. This electronic payment system removes many of the complexities employers face while paying super for their employees.
To set up SuperStream for your first time, it is necessary to acquire the following details from your employees:
Tax File Number (TFN)
Unique Superannuation Identifier (USI)
If, however, your employee has a Self-Managed Super Fund (SMSF), instead of a USI they need to provide you with:
Fund bank account details
Fund electronic service address
With this information, as an employer you are then able to choose from 3 options, with the simplest option being a Super Clearing House. A clearing house operates by first receiving a single electronic payment from you, as the employer, then distributing the appropriate amount to each of your employees’ funds.
Thus we highly recommend that you start the transition early in order to allow yourself ample time to adjust and ensure the process is running smoothly before the 30 June 2016 deadline.
When am I required to make my payment by?
You have to pay super guarantee contributions for each eligible worker at least four times a year. The cut-off date for the 1 July – 30 September period is 28 October 2015.
However please note that the 28 October cut-off date relates to the payment having reached the employees’ superfund and not when you made the payment. Keeping in mind that banks require 3 days processing time, the payment should be made on or around 22 October.
Are there any penalties for not making the Super payment?
If you haven’t met your super obligations as an employer, you have to lodge a Superannuation guarantee charge statement – quarterly and pay a super guarantee charge to the ATO.
You’ll have to do this if you don’t pay:
Enough super contributions for your employee – this is called a super guarantee shortfall
Super contributions by the quarterly cut-off date for payment
Super to your worker’s chosen super fund – this is called a choice liability.
If you require help in this area, please do not hesitate to contact one of our Accountants at The Quinn Group on (02) 9223 9166 or submit an online enquiry.
– See more at: http://t11.blgvt.com/superannuation-payment-deadline-upcoming-for-september-quarter/#sthash.qUjGX63g.dpuf