Your quarterly superannuation guarantee (SG) contribution lodgement and payment is due this month. Remember the payment must be made in time to reach your employees superannuation fund by the 28th of January 2021.
Before you make the payment there are some things you should review before finalising. Have you:
- allocated all payroll related bank transactions to the correct accounts?
- checked for errors such as duplicate pay runs?
- checked that all payroll categories used this quarter have had super correctly applied or excluded?
- checked superannuation accrual reports for accuracy?
- included any salary sacrifice amounts?
- checked for termination payments this quarter? If there are any, check which payroll categories have super calculated or exempted.
- Ensured you have complete and up-to-date contact details and a super choice form for all employees?
Most superannuation clearing houses (including SuperStream compliant software companies) require payment by the 21st of the month in order to distribute the funds to the relevant super funds for each employee.
If you use the ATO Small business Clearing House (SBSCH) you have until the 28th to lodge and pay.
For those who have a Self Managed Superannuation Fund, that they contribute to on their own behalf, the 28 January deadline applies as well. There is no requirement in this situation however to use a Superannuation Clearing House such as the SBSCH. (Although you can if you so choose).
Checking the figures thoroughly each quarter ensures that you report and pay accurate amounts for each employee. You will also have a more accurate picture of your superannuation liability and be able to plan your cash flow requirements accordingly. You can choose to make the contributions on a monthly basis if it assists you in managing cash flow.
Penalties for late super can be significant. These include payment of the Super contribution direct to the ATO with an administration charge and interest. Superannuation calculations can be difficult if your payroll software is not set-up for correct accruals of superannuation guarantee.
We can help you review of your super set-up and the SG accounts used in your accounting software. Many of the current software providers have an arrangement with a superannuation clearing house to enable this to occur directly.