We have previously discussed the obligation for employers to remit superannuation guarantee contributions (SGC) quarterly.
But do you know the reporting requirements?
- Report Details of the Contributions to your Employees. (see below for more information)
- Keep a Record of all contributions made.
- Keep a record of when, what and how you reported to your employees.
How Do I Report To My Employees?
You are required to report to your employees details of contributions made on their behalf within 30 days of making the final contribution for the quarter.
For example, if you pay your contributions on October 28, the report will be due by November 27.
You must advise each employee in writing of the following:
- Name of Employee
- Name of Superannuation Provider
- Contact Phone Number of Superannuation Provider
- Employee's Account or Membership Number (if known)
- Amount of Contribution Made
How do I report these details?
There is no specific format required. Some examples are:
- a letter signed and dated by the employer or authorised person
- email your written report
- notification from your software package eg. on a payslip
- copy of the receipt for contributions received from the fund.
We have developed a standard template that you may wish to use.
The Australian Taxation Office (ATO) have also developed a standard template you may use.
A penalty of up to $3300 per employee can be applied for failing to report to an employee.
If you do not pay contributions by the due date, you need to lodge a superannuation guarantee statement and pay the superannuation guarantee charge, which includes the contribution, 10% interest per annum and an additional $20 per employee.