The ATO has recently confirmed some key focus areas of business debt collection – including debts relating to superannuation guarantee (SG), pay as you go (PAYG) withholding and GST.
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This is a timely reminder for all businesses to ensure they are meeting their obligations.
For SG contributions for your employees and eligible contractors, these payments must be made on time and to the correct funds (and some awards may require more than quarterly payments).
It is important to note that a contribution made to a commercial “clearing house” is not considered paid until it is received by the employee’s fund, not by the clearing house. However, if you use the ATO’s Small Business Superannuation Clearing House, the contribution is “paid” when received by that clearing house.
If you miss a payment, taking action promptly is essential to accessing the ATO’s support services and minimising your exposure to penalties. You must lodge an SG charge statement with the ATO within one month of the missed quarterly due date and pay any necessary SG charges. These charges can accrue to more than the amount of contributions you would have paid if you had paid them on time, and it’s not deductible.
The charge is paid to the ATO, not your employee’s fund and general interest charge will accrue on any outstanding SG charges, and even may result in the ATO issuing a director penalty notice if it remains unpaid.
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