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Help Your Business & Employees In Starting With Super

Help Your Business & Employees In Starting With Super

When it comes to running your own business, there are a lot of things you have to think about and learn doing. One such thing is paying super.

Avoiding super for your workers can result in penalties and can turn out to be a costly mistake.

The employers who don’t pay the right amount of Super Guarantee (SG) for workers on time or to the right fund, they need to lodge and pay the SG charge with the ATO within a month of the quarterly due date.

Try not to miss the deadline to avoid any penalties.

How Is Super Guarantee Charge Different From Super Guarantee?

  • Super calculated on an employee’s total salary, allowances, overtime and wages
  • Nominal interest calculated at 10% per annum
  • Administration fee of $20 per employee every quarterWhen it comes to the Super Guarantee Charge, the process of calculating is quite different from paying the super guarantee to the employees’ funds. No matter, what business you are in, the SG charge will usually cost more and includes:
By making timely super guarantee payments to employees, an employer can enjoy the benefit of claiming a tax deduction for them. No deduction can be claimed for the super guarantee charge amount. As per the Australian Taxation Office recommendation, even if an employer can’t pay in full, he/she still needs to lodge the Super Guarantee Charge statement with the tax office by the mentioned due date to avoid penalties of up to 200%. A registered tax accountant can help in setting up a payment plan that suits your needs and circumstances.

Guide Employees In Choosing A Super Fund

As a responsible employer, play your best part by helping an employee choose a super fund and guide them through the process with tools and information shared by the Australian Taxation Office.
In case, your employee has an existing super fund, let them know they can:
  • Log on to ATO online services to consolidate their super and save the unnecessary fee
  • Choose their existing fund if it meets their current needs and keep track of their super
  • Visit the ATO website to find the super fund details and complete a super fund choice form
For employees who are new to work and don’t have an existing super fund:
  • Encourage them to use the YourSuper comparison tool to choose the best fund
  • Mention the benefits of keeping track of the super and tell them its never too early
  • Inform them that the choices made today will help shape lifestyle options in future
These easy tips about super can make your business, as well as employees, start with a super guarantee can easy one.

For more handy tips on super, schedule a consultation with our tax accountant at KPG Taxation.

Consulting with KPG Taxation

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