The Government has given employers an amnesty of 12 months from 24 May 2018 in order to pay any superannuation liability outstanding for its employees. Employers who have underpaid the superannuation guarantee, need to pay the owed super in full plus a higher rate of nominal interest but will not be subject to penalties for late payment.
Those who choose not to pay their workers the entitlements they are owed during the amnesty period, may face fines of 50% of the super owed in addition to the payment of withheld monies.
Please note that the Director is personally liable for any superannuation payments which are not made by the due date. If the company fails to pay super by the due date (28th of the next month following the quarter), a super guarantee charge statement must be lodged by 28th of the month following the due date.
The amnesty period ends just before Single Touch Reporting is to be implemented on 1 July 2019 for employers with 19 or less employees. STP ensures that businesses report payments such as salaries, PAYGW and super at the same time they pay their employees. More information on this can be found in our article:
For more information, please contact Tradies Accountant and we can help you with your super obligations and any other questions you may have.