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Industry : Newsbite
ATO flags super guarantee charge deadline
Employers that will struggle to pay an employee’s minimum superannuation guarantee (SG) amount on time and to the right fund, must remember to pay the superannuation guarantee charge (SGC) this tax time, says the ATO.
“We understand that paying your employees’ super may sometimes fall by the wayside,” the ATO said. “But it’s important you know how to get back on track.”
Businesses that missed the due date or didn’t pay the correct amount of SG for the quarter just ended would need to lodge an SGC statement to the ATO by 30 May (as 28 May falls on a Saturday) to disclose any missed or late super. This included paying the SG charge to the ATO.
“Unlike paying SG for your employees, the SG charge is calculated on an employee’s total salary and wages (including overtime and some allowances) and includes interest and an administration fee of $20 per employee, per quarter,” the ATO said.
The ATO said the easiest option to work out the SGC was to use the SGC statement spreadsheet and calculator.
“Use the SGC calculator in online services for business or online services for individuals. The statement will also calculate your liability,” the ATO said.
“Businesses can complete the SGC statement spreadsheet and lodge using online services for business or online services for individuals,”
Employers could also use the super guarantee charge statement and calculator tool to generate a PDF version of the statement. This could be printed and mailed to the ATO.
“However, we don’t recommend this option as there is a higher chance for mistakes and takes much longer to process,” the ATO said.
The ATO said even if businesses were unable to pay in full, they should still lodge an SG charge statement on time and engage with the tax office.
“When you lodge on time, you can access our support services and you may be able to set up a payment plan to pay in instalments,” the ATO said.
If businesses request an extension of time to lodge an SGC statement, the general interest charge (GIC) would apply from the deferred payment request until the SGC is paid in full.
“You must make the request before the due date by either writing to us and stating why you need an extension and phoning us on 13 10 20,” the ATO said.
“We prioritise the collection of unpaid SGC debts. We’ll work with you to address outstanding amounts but if you don’t engage with us, we’ll take stronger action which can include additional penalties.
“If an employee reports you for unpaid super, we’ll start an investigation on their behalf. We’ll keep them informed of the investigation and the progress of our debt recovery actions.
“If we find or reasonably suspect that you haven’t met your obligations, we may inform all your affected employees and any former employees of any superannuation guarantee shortfall.”
Compliance : Newsbite
New annual wage arrangements in the health services and marine towage industries
There are new terms about using annual wage arrangements in the:
These arrangements, sometimes called annualised salaries, can be made from the first full pay period on or after 9 May 2022.
An annual salary can’t be less than the minimum entitlements an employee is entitled to under the award or registered agreement that applies and the National Employment Standards.
There are requirements that employers need to meet when setting an annual salary. An award, contract or registered agreement can outline these requirements.
Health Services changes - Under the Health Services Award, full-time employees can agree to be paid an annual wage instead of a weekly or hourly pay rate if they’re classified as:
An annual wage under the Health Services Award can compensate an employee for their award minimum:
Employees and employers can end an annual wage arrangement:
Written annual wage arrangement - The annual wage arrangement needs to be in writing and explain:
Employers have to give their employees a copy of the arrangement.
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Record-keeping - The employer needs to record the employee’s:
Employees then sign the record of hours, either in person or electronically, at the end of every pay period or roster cycle. This record is used for annual reconciliations.
Overtime and penalty rates - An annual wage doesn’t mean an employee isn’t paid overtime or penalty rates. If an employee works for more than their agreed maximum (or ‘outer limit’) overtime or penalty hours in a pay period or roster cycle, they need to be paid for the extra hours at the overtime or penalty rate in the award.
Annual reconciliations - Employers have to undertake a reconciliation of the employee’s annual wages:
If the amount actually paid to the employee is less than the award payments that they would have been paid under the award, their employer has to pay them the difference within 14 days.
Marine Towage changes - Under the Marine Towage Award all full-time employees can agree to be paid under an annual wage arrangement.
An employee’s annual wage:
Employers need to make sure the employee’s annual wage is high enough to cover the award entitlements that they’ve included in the arrangement, which can include:
Employees and employers can end an annual wage arrangement:
Written annual wage arrangement - The annual wage arrangement needs to be in writing and explain:
Employers have to give their employees a copy of the arrangement.
Record-keeping - The employer also needs to record the employee’s:
Employees then sign the record of hours, either in person or electronically, at the end of every pay period or roster cycle. This record is used for annual reconciliations.
Overtime and penalty rates - The maximum (or ‘outer limit’) number of penalty hours and overtime hours the employee can be required to work in a pay period or roster cycle without extra payment is:
If an employee works more than their agreed maximum (or ‘outer limit’) number of overtime or penalty hours, they’re entitled to be paid at the overtime or penalty rate provided by the award for the work performed.
Annual reconciliations - Employers have to undertake a reconciliation of the employee’s annual wages:
If the amount actually paid to the employee is less than the award payments that they would have otherwise received, their employer has to pay them the difference within 14 days.
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