On the 1 July 2022, superannuation guarantee (SG) is increasing from 10% to 10.5%. I can hear some clients
saying, what another overhead increase!!
SG will rise to 10.5% from 1 July 2022. Ordinary time earnings are generally what you earn for your ordinary hours of work, including commissions, shift loadings and allowances, but not overtime payments.
The new rate applies on salary & wages paid on or after 1 July 2022. Superannuation contributions for the quarter ending 30 June 2022 will be calculated at the old rate of 10%.
It’s important you pay your workers the correct amount of superannuation and its paid-on time. We have seen increased ATO monitoring, ensuring staff are paid their full entitlement of superannuation and its paid-on time. There are significant penalties for non-payment or late payment of superannuation. This includes an additional lodgment to the ATO of Superannuation Guarantee Charge (SGC) statement, interest penalties, late payments fees and the superannuation payments are not tax deductible.
If you are having difficulties meeting your SG by the due date, it is best if you make a voluntary disclosure by completing and lodging an SGC statement by the due date.
Don’t forget I am only a telephone call away if you are currently experiencing cash flow problems. I am more than happy to assist.
While on the topic of SG, the ATO has a SG eligibility decision tool will help you determine if your employees are eligible for super, including any contractors treated as employees for super purposes.
Nigel Mason - Accounting Manager HGF