Employers who employ staff have an obligation to pay superannuation on behalf of their staff at 9.5% of gross wages. This obligation also applies to employers who have “employee/contractors” being subcontractors who basically work only for one employer and are paid on an hourly basis.
Many employer fail to keep up with their superannuation obligations and there is a process known as the Superannuation Guarantee charge which the ATO use to force employers to meet their outstanding superannuation obligations. Under this process the employer pays interest and penalties in addition to the outstanding superannuation. The bill can grow pretty quickly.
However there is currently an Amnesty in place.
The super guarantee (SG) amnesty is a one-off opportunity to correct past unpaid SG amounts. Employers have a six-month window, until 7 September 2020, to disclose, lodge and pay unpaid SG amounts for their employees. Employers can claim deductions and not incur administration charges or penalties during this amnesty.
If you have fallen behind in your super payments and wish to take advantage of this amnesty, please contact us for assistance.