Superannuation guarantee contribution is one of the major obligations of a business owner. Generally, superannuation guarantee (SG) payments must be made into complying super funds or retirement savings accounts by the quarterly due dates, which are 28 days after the end of each quarter. Eg. 28 October, 28 January, 28 April and 28 July. An employer can also make this payment more regularly if they want to as long as the total SG obligation for the quarter is paid by the due date.
If you don’t pay the employee SG contributions on time by the quarterly deadline, you will be penalised and required to pay the superannuation guarantee charge (SGC), which is not tax deductible, neither are the late payments.
You can use a late payment to offset the SGC or as pre-payment of future superannuation contribution. This pre-payment is tax deductible.
The employer is entitled to claim a tax deduction for the superannuation guarantee payments made for their employee in the financial year given that they meet the SG requirements. SG contributions are only considered paid when the super fund receives them.
If you have overdue or late employee superannuation contributions, please contact our office at (02) 9223 9166 to discuss how to lodge a Superannuation guarantee charge statement and pay SGC or submit an online enquiry form today