Super Guarantee Compliance

The ATO are using information they already have to track employer compliance. By expanding the use of information from Single Touch Payroll (STP), they are now combining it with data from super funds to track when employers pay employees.

The ATO Are Now Watching Superannuation Payments… Even Closer

The ATO are using the information they already have to track employer compliance. By expanding the use of information from Single Touch Payroll (STP) software, they will now combine it with data from super funds to track when employers pay their employees’ super guarantee (SG).

In other words, Single Touch Payroll, combined with the use of superannuation clearing houses, 
means the ATO will use full visibility over exactly how much superannuation is owed to whom and on which date it becomes due.

If the ATO identifies a shortfall, they may contact employers with the information reported to help employers review the data and lodge a super guarantee charge (SGC) statement. Employers will have the opportunity to correct any errors previously reported to the ATO.

What Does This Mean for Employers?

The law already requires employers to report every payment to employees through Single Touch 
Payroll on or before payday.

The ATO have advised they are following up if reports are late.

Employers must ensure sufficient time is allowed for the clearing house to make payments to the 
respective superannuation funds before the payment due dates. SG obligations are not satisfied until the superannuation fund receives the contributions. Most clearing houses require up to ten days to process contributions.

Superannuation Payments must be received by the employees super funds at least within 28 days of  the end of each quarter. This normally requires payment by about the 15th of the respective month. 

If payments don’t reach the nominated fund by the due date, an SGC statement must be filed and penalties paid to the ATO.

The government has announced that they are considering implementing payments of super to be 
required at the same time and every time an employee is paid. This is not yet implemented but 
indicates the Government’s importance attached to ensuring employers pay the required super.