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What Is Super Guarantee Charge
Alan Law • November 18, 2021
There are many things to remember when paying superannuation for your employees; but knowing the difference between super guarantee (SG) and the SG charge may just be the most important.
The SG charge is an additional amount you'd need to lodge and pay to the ATO if you didn't pay your employees' super:
- on time by the quarterly due date
- at the new rate of 10%, or
- to the right fund (e.g. employee's chosen fund)
If any of the above applies to you for quarterly super payments due on 28 October, for example, your organization must lodge a Super guarantee charge statement online by 29 November and pay the SG charge to the ATO. By doing this, you will avoid significant penalties.
The way you calculate the SG charge is also different from how much SG you pay to your employees' funds. The SG charge is calculated on an employee's total salary and wages (including overtime and some allowances) and includes interest and an administration fee of $20 per employee, per quarter.
For further information about how to calculate your super guarantee charge, please contact ACP Accountants, or the ATO.
With the holiday season kicking off, you may be planning a celebration with your staff. Consider if fringe benefits tax (FBT) may apply or you could end up with an unexpected FBT liability. Before you hire a restaurant or book an event, make sure you work out if the benefits you provide your employees are considered entertainment related and if they’ll attract fringe benefits tax (FBT). This will depend on: the amount you spend on each employee when and where your celebration is held who attends - is it just employees? Or are partners, clients and suppliers also invited? the value and type of gifts you provide If you do provide entertainment-related fringe benefits, keep the right records to support this so you can calculate their taxable value. It's important to get on top of how FBT works before you provide perks and extras. Otherwise, you may end up with an unexpected FBT liability. For more information, please contact your Sydney business accountants – ACP Accountants on 02-80467621, or simply get in touch and email us at info@acpaccountants.net.au.
One of the many responsibilities SMSF trustees have every income year is valuing your fund's asset at market value. Each year you need to value your SMSFs assets and provide supporting evidence to your auditor. The market value of an asset is the amount that a willing buyer and seller would agree to in an arms-length transaction. These valuations will be used when preparing your fund's accounts, statements and SMSF annual return (SAR). Your asset valuations will be reviewed by your approved SMSF auditor as part of the annual audit prior to lodgment of your SAR. Your auditor will check that assets have been valued correctly, assess and document whether the basis for the valuations is appropriate given the nature of the asset. They are not responsible for valuing fund assets. Make sure you get your valuations done before going to your auditor. It's your responsibility to provide objective and supportable evidence to your auditor for the valuation of the fund's assets, including all relevant documents requested to prevent delays in auditing the fund. Failure to do so could result in a potential late lodgment of your annual return or a contravention if mistakes have been made. Start researching now to find what type of evidence your need to support the valuation as this can take time. For some asset types the law requires valuations to be undertaken by a qualified independent valuer. For further information, please contact Sydney Business Accountants – ACP Accountants on 02-80467621, or simply email us at info@acpaccountants.net.au.
Two Western Australian directors were recently convicted for failing to have a director ID. Both directors were fined $5,000 in the Perth Magistrates Court on 3 May 2024, for failing to comply with director identification requirements. The maximum penalty for failure to comply is currently a fine of $18,780. The Magistrate stated the director ID service had been enacted for a proper public purpose and considerable efforts had been made by government agencies to bring the accused’s attention to the service and comply. All directors are required to verify their identity with the Australian Business Registry Services (ABRS) and apply for their director ID prior to being appointed as a director. Please note that directors must apply for their director ID themselves. The fastest way is to apply online at ABRS.gov.au. If a director is unable to apply online, you can phone ABRS on 13 62 50. For more information about who needs a director ID and how to apply, visit ABRS.gov.au. If you have any questions, please contact your accountant/tax professionals, or contact us today on 02-8046 7621, your local Sydney business accountants.
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With the holiday season kicking off, you may be planning a celebration with your staff. Consider if fringe benefits tax (FBT) may apply or you could end up with an unexpected FBT liability. Before you hire a restaurant or book an event, make sure you work out if the benefits you provide your employees are considered entertainment related and if they’ll attract fringe benefits tax (FBT). This will depend on: the amount you spend on each employee when and where your celebration is held who attends - is it just employees? Or are partners, clients and suppliers also invited? the value and type of gifts you provide If you do provide entertainment-related fringe benefits, keep the right records to support this so you can calculate their taxable value. It's important to get on top of how FBT works before you provide perks and extras. Otherwise, you may end up with an unexpected FBT liability. For more information, please contact your Sydney business accountants – ACP Accountants on 02-80467621, or simply get in touch and email us at info@acpaccountants.net.au.
One of the many responsibilities SMSF trustees have every income year is valuing your fund's asset at market value. Each year you need to value your SMSFs assets and provide supporting evidence to your auditor. The market value of an asset is the amount that a willing buyer and seller would agree to in an arms-length transaction. These valuations will be used when preparing your fund's accounts, statements and SMSF annual return (SAR). Your asset valuations will be reviewed by your approved SMSF auditor as part of the annual audit prior to lodgment of your SAR. Your auditor will check that assets have been valued correctly, assess and document whether the basis for the valuations is appropriate given the nature of the asset. They are not responsible for valuing fund assets. Make sure you get your valuations done before going to your auditor. It's your responsibility to provide objective and supportable evidence to your auditor for the valuation of the fund's assets, including all relevant documents requested to prevent delays in auditing the fund. Failure to do so could result in a potential late lodgment of your annual return or a contravention if mistakes have been made. Start researching now to find what type of evidence your need to support the valuation as this can take time. For some asset types the law requires valuations to be undertaken by a qualified independent valuer. For further information, please contact Sydney Business Accountants – ACP Accountants on 02-80467621, or simply email us at info@acpaccountants.net.au.