Employers: Remember your super guarantee obligations

 5 June 2024

The ATO is reminding employers in the construction industry about the importance of meeting their super guarantee (SG) obligations to avoid penalties.

Thinking about putting more workers on the tools?
Don’t forget about your super obligations

It's important for employers in the construction industry to check you’re up to date with your SG obligations. Employers who don’t pay their employees’ super in full, on time, and to the right fund will be liable for the super guarantee (SG) charge. 

Super is not optional, and most employers pay their employees’ super on time, in full and to the right fund. However, employers who don’t meet their SG obligations will need to pay the super guarantee charge (SGC). This is more than the SG they would have paid originally and isn’t tax deductible.

To meet your SG obligations and avoid additional costs in penalties and interest:

  • pay your employees’ SG in full
  • calculate SG contributions at 11% of your eligible workers’ ordinary time earnings
  • make sure the SG reaches their nominated super fund by the quarterly due date

The ATO receives single touch payroll and fund reporting data which allows the ATO to determine if an employer has met their SG obligations. Additionally, employees can notify the ATO if they believe their employer has not met their SG obligations. When the ATO receives and reviews an employee notification, they may alert other employees.

For more information about missed or late SG payments, you can visit the ATO’s website. They have resources that can assist in getting on top of your obligations, including a Super obligations for employers checklist and SG employer obligations course.

Tax time essentials for small businesses

The ATO has learning resources, tools and services to support your small business at tax time.

It’s important to remember you are responsible for what you report and claim in your income tax return, even if you use an agent. The ATO has tools and services to help get your tax obligations right.

A new fringe benefits tax year started on April 1. If you’re an employer and have provided certain benefits to your staff in addition to their salary and wages, get ready to lodge your 2023–24 FBT return.

If you’re paying for your employees’ external training, you may be eligible to claim the small business skills and training boost. Businesses with an aggregated annual turnover of less than $50 million can claim eligible spending for external training courses delivered to employees by registered training providers.

If your business has received government support payments due to being affected by a natural disaster, check if you need to include them as assessable income in your tax return before you lodge. Some support payments are non-assessable, non-exempt income and don’t need to be included in your tax return.

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