Have you paid your Superannuation Guarantee Contributions for the September 2020 Quarter?

Superannuation Guarantee Contributions for Quarter Ended 30 September 2020 are due by 28 October 2020.

Superannuation guarantee contributions due

If you are an employer or are responsible for managing employee superannuation contributions, we wish to remind you to pay staff superannuation guarantee contributions for the quarter ended 30th September 2020 BEFORE 28th October 2020 or you can be liable for penalties.

When arranging payment for this quarter, please ensure that you allocate enough time for processing. Payment must be received and banked by your employee’s super fund BEFORE 28th October 2020. Allowing 5 working days BEFORE the due date to remit your contributions is a good general rule of thumb.

Do I still need to pay Super on top of the JobKeeper Wage Subsidy?

You are only required to pay superannuation on ordinary time earnings for your employees.

This means that for any amount payable for which work was performed, superannuation contributions will need to be made.

For example, if an employee performs work which entitles them to be paid $1,000, but the employer paid them the full $1,500 JobKeeper payment for a JobKeeper fortnight, then the employer will only be required to make superannuation contributions in relation to $1,000.

If an employee is formally stood down but still receiving the $1500 fortnightly JobKeeper payment you are NOT required to pay superannuation because this is not classified as ordinary time earnings.

For an employee that earns above $1,500 per fortnight for their work, the employer is required to pay normal superannuation contributions on the full amount.

What happens if the payment deadline is not met?

If payment is not made by the deadline, or to the correct fund, you may have to lodge a Superannuation Guarantee Charge (SGC) statement and pay the SGC. In some cases, Directors of companies can become personally liable if superannuation guarantee contributions are not paid by the due date.

How can we help?

If you have any questions or would like advice to ensure you and your funds are well prepared for the next quarterly due dates and beyond, please contact our team of Super advisors on +61 2 9981 2300 or use the below button.