Geelong Accountants Discuss Superannuation Amnesty

You’ve been paying your employees the wrong amount of Superannuation Guarantee?  So have many other Australian businesses! The Australian Taxation Office is scrupulous about the correct super contributions being paid.

bruno-aguirre-186550-unsplash.jpg

That’s the bad news, but here’s the good news! The Australian tax office is currently allowing businesses to catch up and for unpaid contributions to be corrected without the extra penalties! This initiative is called The Superannuation Guarantee Amnesty.

The Amnesty is open between 24th May 2018 – 23rd May 2019, for super errors that took place between 1 July 1992 and 31 March 2018. This gives employers (past or present) the chance to pay employees their rightful amounts without extra charges or fees! It’s basically like a criminal handing himself into the police without penalty due to honesty! It’s a pretty good deal!

If you are a business who has fallen short of paying correct amounts of super and you disclose this during the Amnesty period, the following will apply;

- You will not be liable for administrative penalties that usually apply for late Super Guarantee contributions
-  You will be able to claim tax on the catch-up payments made within the 12-month period.
-  You will not be liable for a penalty (referred to as Part 7) which can be up to 200% of the amount of the charge payable

The Amnesty is a HUGE benefit for businesses that Next Level Accountants thoroughly supports.

If you are guilty of falling short when paying employees’ their 9.5% of super, The Amnesty consists of a simple process. When you (or your accountant) have calculated the payable amount, you can transfer it straight into the employee’s super fund/s. You can then complete the payment form and submit to the ATO directly through the business portal – simple!

Understanding that outstanding super amounts may be of large quantities, the ATO can arrange a payment plan.  However, if your payment plan extends beyond 23rd May 2019, the payments after this date will not be tax deductible.

Post-Amnesty, you may face higher penalties if you have not corrected outstanding super to be paid. The penalty (Part 7) will be automatically imposed at 200% of the super guarantee contribution amount.

Your employee will receive the superannuation guarantee backpay amount and the relevant interest. This will be calculated by the ATO on the whole period of contributions that are payable.

Make sure you inform your employees of any superannuation payments you make to them through the Amnesty.

If you are a small business that has perhaps been ignorant or misinformed about paying employees’ super, give Next Level Accountants Geelong a call to work out a plan to get you up to date.