The business's superannuation obligation must be met. Usually your super will need to be paid within 28 days following the end of the quarter. If it is not met, the Australian Taxation Office imposes large fines on businesses. For example, you will not receive a tax deduction for the superannuation paid. Also, you have to lodge a superannuation guarantee charge statement with the ATO which includes interest from the start of the quarter and an admin fe ($20 per employee). This form is very time consuming to fill out.
There are also many rules regarding superannuation. Not all payroll items include superannuation. For example, the following items do not include super in most scenarios:
- Expense allowances that are expected to be fully expended
- Certain parts of termination payments
- Leave Loading
- Parental Leave
Employees may require super to be salary sacrificed or deduct extra super as a member voluntary payment. Bizgro can set this up in your accounting datafile correctly.
If you engage subcontractors who are sole traders, you may also be required to pay super on their behalf, even if they quote an ABN.
Bizgro Bookkeeping helps to ensure your business meets it obligations. We reconcile and lodge your super with a super clearing house and send you the BPAY reference details so you can pay the super. In most cases, we use the Australian Taxation Super Clearing house which is a free service. Bizgro also gives you a courtesy phone call to remind you to pay your super, 1-2 days prior to the due date. At Bizgro, we aim to make super easy.