Case
Study
Sole trader Chris failed to pay $2,500
superannuation guarantee for his employee Ron for the June 2015 quarter. Ron
is 21 and a full time employee who has been working for Chris for two months.
Chris is legally required to pay 9.5% of Ron’s ordinary times earnings to an
eligible superannuation fund by the 28th day past the quarter. However
Chris is new in business and was not aware of his superannuation obligations.
The ATO became aware of the non-payment
of superannuation and issued an audit notice. Chris then realised he hadn’t
made any payment and went to his accountant for help. Chris’s accountant told
him to obtain Ron’s nominated superannuation fund details and then prepared a
Superannuation Guarantee Charge Statement that calculated the following:
·
Superannuation
guarantee shortfall $2,500
·
Administration
fee $20· Interest on shortfall owed to Ron $134.25. Interest is payable from the beginning of the applicable quarter rather than the end of the quarter
When payments are late employers
risk the following:
·
Large
penalties and interest charges
·
Risk
of staff loss· Legal action · Continued audits from the ATO |
Should you wish to discuss your superannuation obligations further please feel free to contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 for an initial consultation.
We provide accounting and wealth management services to clients in Woodend, Gisborne and Macedon Ranges areas within Victoria Australia.