Superannuation Guarantee Compliance

With all of the complexities of Australian payroll, ensuring compliance with the Superannuation Guarantee (SG) obligations is a very important task.
​Legislation surrounding superannuation contributions requires vigilant attention and a proactive approach from businesses to avoid missing legal updates and the pitfalls of non-compliance.
Read on for tips to maintain your compliance as an employer.

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Compliance and why it is important 
A major part of payroll operations is the responsibility to ensure that employees’ superannuation contributions are calculated accurately and paid efficiently to ensure no penalties are incurred. The ATO enforces strict guidelines around this, which can open you up to significant penalties if not adhered to. When not paid correctly and on time, you are also undermining your employee’s retirement savings efforts. 

Another point to consider is that making payment of super for the 4th quarter of the financial year after June 30th, means you won't be able to claim that as a deduction in your tax return until the next year when it is paid.

Tips to maintain super compliance 

1. Stay ahead of the news 

Keep yourself informed about upcoming changes to employer’s requirements. The super guarantee rate periodically changes, so keep your eyes peeled for these kind of updates. 
A great way to do so, is to subscribe to the ATO newsletters (simply select the topics you’re interested in).
    2. Regularly review your payroll 
Undertaking audits of your payroll register is imperative to ensuring no errors have been made, and allows you to rectify errors as soon as they are discovered. An external consultant can be engaged to perform these services. 
    3. Embrace technology 
Utilising payroll software that is up to date with the latest legislation and requirements will help to reduce the risk of errors occurring. Automation can help with timing to ensure you are not late in processing payment of your employee’s super guarantee. 
    4. Record keeping 
Detailed record keeping is imperative for payroll operations. Ensuring compliance, and making things much easier if you are ever audited by the ATO. 

Always remember, even if you own the business and are the employee, you are still required to stick to the rules and pay your super correctly, as you would for any other employee.  Your commitment to this issue reflects your integrity towards yourself, your business, and employees. Find out the current and historical superannuation rates here.

If you are not sure you are 100% doing things correctly, or need assistance relating to payroll and bookkeeping, give our team a call on (08) 9367 4199.