As accountants, it’s crucial to keep employer clients on track with their superannuation obligations. We’re here to help ensure that your clients avoid costly mistakes with their Super Guarantee (SG) contributions. This article highlights common errors and offers tips to keep employers compliant.
Mismatching Information
One of the most frequent issues employers encounter is when their employees’ details don’t match their super fund information. Even a small mismatch in details, such as a name, date of birth, or Tax File Number (TFN), can cause super payments to be rejected. Encourage your clients to double-check employee details before making super contributions.
💡 Tip: If a payment is delayed due to mismatched information, employers can still make on-time contributions into a default fund to avoid penalties.
Not Paying the Minimum SG Amount
The required Super Guarantee rate is 11.5% of an employee’s earnings. Even if an employer underpays by just $1, they must lodge a Super Guarantee Charge (SGC) statement and pay the SGC. Help your clients ensure they are paying the correct amount by advising them to use tools like the SG contributions calculator.
Missing the Quarterly Due Dates
Super contributions must be made four times a year, and the next due date is October 28. Remind your clients that if they’re using a clearing house, payments must reach their employees’ super funds on time to be considered valid. Contributions are only considered complete once they are received by the employee’s fund, not when they leave the employer’s account.
💡 Tip: If they miss a due date or make a late payment, they must lodge an SGC statement to avoid penalties. We recommend using the ATO’s guide on completing the SGC statement for assistance.
Ensuring Super Success for Your Clients
Helping your clients stay compliant with their Super Guarantee obligations not only prevents costly penalties but also supports their employees’ financial future. Use this checklist from ATO to see if you’re meeting your super obligations.
At Solutions Centric, we understand the intricacies of superannuation obligations and are here to help accounting firms guide their clients effectively. If you need assistance managing super compliance, contact us to learn how our tailored solutions can help.