Don’t get left on the grill because it’s about to get hotter for employers.
WHAT IS EMPLOYEE SUPERANNUATION?
When certain conditions are met, a restaurant employee is entitled to earn superannuation in addition to the base wage.
This amount is usually 9.5% unless otherwise stipulated in awards. The employer notes the Superannuation Guarantee Contribution (SGC) tally on the employee pay slip and in accounting software EG: Xero, Quickbooks.
Usually quarterly, the employer pays all the superannuation accrued by employees to the employee’s relevant super funds.
I HAVEN’T PAID EMPLOYEE’S SUPER – HOW CAN I FIX IT?
There has been a wide spread problem with (all) businesses failing to pay the accrued superannuaton when it’s due. There are harsh penalties for failing to meet payroll obligations.
However, the ATO has introduced an amnesty (named The Amnesty) – an opportunity for businesses to catch up any arrears payments.
Subject to the passage of legislation, the Amnesty will be available from 24 May 2018 to 23 May 2019.
This means that if an employer self-corrects past SGC non-compliance, there will be no major penalties.
The Amnesty applies from 24th May 2018 to 23 May 2019.
The Amnesty applies to previously undeclared SG shortfalls for any period from 1 July 1992 to 31 March 2018. The Amnesty does not apply to the period starting on 1 April 2018 or subesequent periods.
If an employer voluntarily discloses previously undeclared SG (superannuation guarantee) shortfalls during the Amnesty and before the commencement of an audit of their Superannuation Guarantee will:
- Not be liable for the administration component and penalties that may otherwise apply to late SG payments, and
- be able to claim a deduction for catch-up payments made in the 12-month period.
Employers will still be required to pay all employee entitlements including upaid SG amounts owed to employees and the nominal interest, as well as any associated general interest charge (GIC).
If the employer can’t pay the full SG shortall amount directly to the employee’s super funds, they can complete and lodge a payment form to the ATO who will arrange a payment plan.
It’s recommended you start making payments before the ATO contacts you, as this will reduce the GIC you would otherwise have to pay.
Hopsitality Employers who are not up-to-date with their Super Guarantee payment obligations to their employees and who don’t come forward during the Amnesty may face higher penalties in the future.
AM I ELIGIBLE FOR THE AMNESTY?
To be eligible for the Amnesty you must:
- voluntarily disclose amounts of SG shortfall within the 12-month Amnesty period – between 24 May 2018 and 23 May 2019,
- disclose amounts of SG shortfall that have not previously been disclosed, and
- not be subject to an audit of your SG for the relevant periods.
If you have already been assessed for a period, you can amend a previously disclosed SG shortfall, but only newly-disclosed amounts are eligible.
WHAT IF I’M SUBECT TO AN AUDIT?
You are not eligible for the Amnesty for any periods that are subject to an audit of your SG. An audit of your SG can be initiated at any time by the ATO. The ATO will also take action in response to employees who advise they haven’t received their SG, which may also result in an audit.
WHAT ARE THE BENEFITS OF THE AMNESTY?
Benefits of the Amnesty include:
- the administration component of the super guarantee charge (SGC) is not payable
- Part 7 penalty will not be applied
- all catch-up payments made during the 12-month Amnesty period will be tax-deductible.
HOW DO I FIX MY PAYROLL?
Accessing the Amnesty is a simple process. If you are able to pay the full SG shortfall amount directly to your employees’ super fund or (funds), then complete a payment form and submit it to the ATO through the business portal. Or contact your BAS Agent bookkeeper to do it for you.
If your books and payroll are in a mess, contact Restaurant Bookkeepers now 1300 043 327
for our “RESCUE ME” package. We’ll get you cleaned up before The Amnesty closes.
No contracts. Pay as you go. Start immediately.
Time to Prep! Mise en place!
Chris and team.
SGC = Superannuation Guarantee Contribution
SG – Superannuation Guarantee
Super = Superannuation
ATO = Australian Taxation Office
GIC = General Interest Charge
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