Is your superannuation in order?
Written on the 23 February 2012 by Macmillans Waller Fry - Accountants
Superannuation payments should not be missed even if small businesses are having tight cash flow problems. The Australian Taxation Office (ATO) has proposed new laws aimed at cracking down on employers. Despite difficult market conditions, employers should not resort to deferring worker superannuation payments.
This is due to heavy penalties and new laws. Businesses that fail to pay employees’ super by 28 days after the end of a quarter must pay interest on the missed payments and an administration fee. They are also unable to claim the super payments as a tax deduction which is a major disadvantage. In 2011, the ATO pursued 10,000 cases involving small employers with unpaid superannuation and as a result reclaimed $152 million.
Author: Macmillans Waller Fry - Accountants