The ATO will soon expand how they use Single Touch Payroll (STP) information they have received from employers.
They will do this by reviewing it alongside information reported to them by super funds, which tells them when an employer has paid their employee’s super guarantee.
While they already hold this information, they are improving how they use it to see if employers are meeting their obligations under the Super Guarantee (Administration) Act 1992.
Where they identify a shortfall, they may contact employers with the information reported to them in order to have them lodge a super guarantee charge (SGC) statement if necessary.
Employers will have the opportunity to correct any errors previously reported as well.
Remember, super guarantee (SG) payments for employees need to be made in full, on time, and to the correct fund.
If super guarantee (SG) payments aren’t received by an employee’s nominated super fund by the due date, employers will need to lodge a super guarantee charge (SGC) statement in order to pay the super guarantee charge (SGC) to the ATO. Employers who are using a superannuation clearing house need to be especially mindful of this as super is considered paid when the funds reach the super fund and not the clearing house.
If the super guarantee (SG) is paid late, employers still need to lodge a super guarantee charge (SGC) statement. The ATO cannot automatically apply late payments to a missed super guarantee (SG) quarter.
Employers also need to tell the ATO how they want them to allocate any late super guarantee (SG) payments when they lodge their super guarantee charge (SGC) statement.
It is more important than ever to correct information as soon as a mistake is discovered to limit financial costs to the employer and to ensure future compliance.
Employers should make sure that their reporting is timely and accurate, and that they maintain good records.
To view this announcement, please visit: Improving super guarantee compliance – ATO
|ATO corporate plan 2023–24 The ATO released its 2023/2024 Corporate Plan in July earlier this year and have identified ‘superannuation guarantee (SG) integrity’ as one of eight focus areas. The ATO’s corporate plan 2023–24 can be found in the below reference: Superannuation guarantee integrity – ATO corporate plan 2023–24|