How to deal with late super guarantee payments

The Super Guarantee Charge (SGC) applies If when you fail to pay an employee's minimum superannuation guarantee amount on time and to the right fund. The SGC is a penalty — it’s more than the super you would have otherwise paid to the employee's fund and is not tax deductible. You must also lodge an SGC statement to the Australian Taxation Office. 

If you find yourself in a position where you must pay SCG, here’s what you need to know. 

What is the SGC made of? 

The SCG is made up of: 

1. The super guarantee shortfall. This includes super calculated on salary and wages (including overtime), as well as any choice liability, based on the shortfall and capped at $500. 
2. Nominal interest of 10% per annum (accrues from the start of the relevant quarter). 
3. An administration fee of $20 per employee, per quarter. 

Working out your SCG and lodging your SCG statement. 

You’re responsible for calculating the SGC you owe and lodging the associated statement. There are three ways to do this: 

Option 1: The SCG Calculator in Online Services. 

Use the SGC Calculator in Online Services for business or Online Services for individuals (whichever applies to you). The statement will also calculate your liability. 

Using this method, the SGC calculator will ask you a series of questions to help work out if you need to pay the SGC for your employees and how much you need to pay. At the end, the calculator will electronically lodge your SGC statement with the ATO. This is, in our opinion, the simplest way to handle your SCG statement. 

Option 2: The Statement Spreadsheet in Online Services. 

Complete the SGC Statement Spreadsheet (downloadable from this page) and lodge using Online Services for business or Online Services for individuals. The spreadsheet will work out the nominal interest component but not the super guarantee shortfall. 

Make sure to complete a separate spreadsheet for each quarter (you can attach up to six spreadsheets), refer to the first tab of the spreadsheet for completion instructions, and use the .xls format when you save the spreadsheet. 

To send the spreadsheet to the ATO, open the Secure Mail function. Select New Message, select Topic — Superannuation, select Subject — Lodge SGC statement. 

Option 3: Mailing a printed PDF. 

Use the SCG statement and calculator tool to generate a PDF version of your statement. Then, print this and mail it to the ATO. Use the super guarantee charge statement and calculator tool to work out if you need to pay the SGC for your employees and how much you need to pay. 

If you are a WPN holder without an ABN, enter 70707070707 into the ABN section to complete the SGC statement. Include a cover note quoting your WPN as a reference when you mail the signed and completed statement. Mail the completed statement to: Australian Taxation Office, PO Box 3578, ALBURY NSW 2640. 

Note that we don't recommend this option — there’s a higher chance for mistakes, it might get lost in the post, and even when things go smoothly, it just takes much longer to process. Opt for one of the online options if you can. 

Paying the SGC. 

To pay your super guarantee charge, you need a payment reference number (PRN). If you have an SGC-related notice or payment slip from the ATO, for the same ABN or WPN, you can use the same PRN that is on it to pay the ATO. 

In Online Services for business and Online Services for individuals, the PRN can be found at the print option on the SGC lodgment summary screen, the accounts summary screen, or payment screens for BPAY or “other payment” methods. If you need a new PRN, phone 1800 815 886 during business hours. Make sure you have your ABN or WPN and contact details with you when you call. 

When you have your PRN, you can pay the ATO the SGC using these options. 

SGC payment & lodgement dates. 

The due date for payment of the SGC and lodging the statement is one calendar month after the super guarantee due date. Sometimes, the due date falls on a weekend or public holiday. When this happens, you must make the payment and lodge the SGC statement on the next business day. 

• Quarter 1 goes from 1 July – 30 September. The Super Guarantee Payment due date is 28 October. If you miss this deadline, the SGC and statement are due on 28 November. 
• Quarter 2 goes from 1 October – 31 December. The Super Guarantee Payment due date is 28 January. If you miss this deadline, the SGC and statement are due on 28 February. 
• Quarter 3 goes from 1 January – 31 March. The Super Guarantee Payment due date is 28 April. If you miss this deadline, the SGC and statement are due on 28 May. 
• Quarter 4 goes from 1 April – 30 June. The Super Guarantee Payment due date is 28 July. If you miss this deadline, the SGC and statement are due on 28 August. 

What happens when you don’t pay the SCG. 

The ATO takes SGC payments very seriously, and especially prioritises the collection of unpaid SGC debts. While they’ll initially collaborate with you to address outstanding debts, they’ll quickly take stronger action — which can include additional penalties — if their efforts or communications are ignored. 

If an employee reports you for unpaid super, the ATO will start an investigation on their behalf. If they discover — or even suspect — you haven't met your obligations (whether intentional or not) they’ll inform all your affected employees and any former employees of a superannuation guarantee shortfall. 

In any case, it’s important to pay your staff the super they owe on time, to the right fund. If you don’t, sort out your SCG as soon as possible to avoid further penalties. 

Need a hand? 

If you’ve been contacted by the ATO about an SGC and aren’t sure how to handle it, contact us. Our friendly Accountants will help you ensure your SCG payments are made correctly and promptly, and show you how to avoid making the same oversights in the future.