From 1 November 2021, there is an extra step that employers may need to take to comply with choice of fund rules for new employees.
If new employees don’t choose a superannuation fund, you may need to request their ‘stapled super fund’ details from the ATO – A stapled super fund is an existing super account which is linked, or ‘stapled’, to an individual employee so that it follows them as they change jobs.
The intention of the change is to reduce account fees by preventing new superannuation accounts from being opened every time an employee starts a new job.
If employers don’t meet their choice of fund obligations, additional penalties may apply.
Further information regarding this change is available on the ATO website, which can be accessed here.
Superannuation Guarantee obligations due dates
Superannuation guarantee contributions for a quarter are due for payment into employees’ superannuation accounts by the 28th day after the end of the quarter (i.e., September 2021 quarter is due 28 October 2021). Superannuation guarantee contributions that are not paid on time are not tax deductible.
If superannuation guarantee contributions are not paid on time, employers are required to lodge a superannuation guarantee charge statement with the ATO.
Superannuation guarantee charge statements result in the employer paying more than they would have been required to as the charge from the statement consists of other components such as interest and administration fees.
The due dates for superannuation guarantee contributions and superannuation guarantee charge statements are summarised below:
|Quarter||Period||Due date for superannuation guarantee contributions||Due date for superannuation guarantee charge statements|
|1||1 July – 30 September||28 October||28 November|
|2||1 October – 31 December||28 January||28 February|
|3||1 January – 31 March||28 April||28 May|
|4||1 April – 30 June||28 July||28 August|
If employers don’t meet their superannuation guarantee obligations (including lodging superannuation guarantee charge statements if required), additional penalties may apply.
Further information regarding super for employers is available on the ATO website, which can be accessed here.
Superannuation for contractors
Employers who engage contractors are generally not liable to pay superannuation guarantee contributions for the contractors. However, there are instances where an employer may be liable to pay super guarantee contributions for a contractor.
The ATO’s view is that a contractor who is paid wholly or principally for their labour is an employee according to the superannuation legislation. If this is the case, the employer may be liable to pay super guarantee contributions for the contractor.
If you have any questions in relation to the above or any other queries, please contact your Holman Hodge adviser.