Super Deadline Approaching
Most employers are aware of the due dates for quarterly superannuation payments. But did you know that your employee’s superannuation contribution is considered ‘paid’ on the date it’s received by the super fund – Not the date it’s received by the clearing house. This is important to retain the deductibility of the expense as well as avoiding the superannuation guarantee charge which imposes interest and administration penalties.
Not only do you need to allow for EFT and BPAY processing times, but you also need to allow for the software and clearing house processing times as well. These can vary significantly between software providers and clearing houses, so it really does pay to check their recommendations.
Xero has already recommended for users to authorise and approve super payments by the 14th of April to ensure the funds are received by the 28th of April. This allows for additional processing times due to the number of public holidays leading up to the due date.
The ATO has on offer the “Small Business Superannuation Clearing House” for businesses with either 19 or fewer employees or an annual aggerated turnover of less than $10 million. The service is free and has the additional bonus that payments are usually considered paid on the date they are received, therefore needing only the bank processing time rather than the additional clearing house processing time. For the April deadline the ATO suggest submitting your payment and instructions to the clearing house by 5.30pm on the 22nd of April. As with most ATO due dates, where they fall on a weekend or public holiday, payment can be made on the next business day.
And if the above wasn’t reason enough to pay your super early, when changing software, moving clearing houses and adding new staff it’s peace of mind to know you have some time up your sleeve in the event your super gets rejected the first time. This can happen for various reasons like fund mergers resulting in outdated USI’s or incorrect employee numbers.
It really does pay to set an earlier date on your calendar.
If you have questions in relation to the above, or any other matters, please do not hesitate to contact our office on 1300 620 345.