New Stapled Super & Superannuation Payments Reminder 2021/2022
For employers - Due dates for the current financial year.
Super is a compulsory employer contribution to eligible employees calculated from the day they start work. As you are probably aware, from 1st July 2021 the super guarantee rate increased from 9.5% to 10%. The rate is scheduled to progressively increase by 0.5% until it reaches its final value of 12% in July 2025. Therefore, you are currently required to pay a minimum of 10% of your employees’ ordinary time earnings into super. You must make the payments at least four times a year, by the quarterly due dates as follows:
Quarterly payment due dates for super payments
|Quarter||Period||Payment Due Date|
|1||1 Jul – 30 Sep||28 October 2021|
|2||1 Oct – 31 Dec||28 January 2022|
|3||1 Jan – 31 Mar||28 April 2022|
|4||1 Apr – 30 Jun||28 July 2022|
Please be aware of the following:
- Allow for processing time. You should pay at least one week before the due date, ideally 15 days after the end of a Quarter. Put this reoccurring task into your calendar so you won’t forget.
- There have been cases where employers receive warning from the ATO for being just 2 days late.
- If you don’t pay on time, you are liable for the Superannuation Guarantee Charge (SGC), even if you make the payment later. This means lodging tedious forms to ATO, which will include:
- o Super shortfall amounts that are calculated on the full salary and wage amount which includes overtime, allowances, etc.
- o Interest charge for the late period (currently 10%)
- o Administration fee of $20 per employee, per quarter
- Furthermore, the ATO has the ability to disallow late payments and impose further penalties, which would result in paying your employees superannuation twice for the same quarter.
- Most importantly, late super payments are non-tax deductible!
NEW STAPLED SUPER FUND
A stapled super fund is an existing super account which is linked, or ‘stapled’, to an individual employee so that it follows them as they change jobs. This means that working Australians will be attached to one super fund for life unless they choose otherwise. This aims to reduce account fees by stopping new super accounts from being opened every time an employee starts a new job.
From 1 November 2021, if you have new employees start, you will be required to take an extra step to comply with choice of fund rules if they don’t choose a super fund. You may now need to request their ‘stapled super fund’ details from the ATO. Failing to do so could cost you a ‘choice liability’ penalty.