Superannuation Services Brisbane & Sunshine Coast
Enrich Bookkeeping Solutions offer reliable superannuation services in Brisbane & Sunshine Coast: What are the COVID-19 implications of missed or underpaid super and what business owners need to know!
It is no secret that COVID-19 has changed the way that many businesses are operating. A lot of business owners and employers are struggling in a way that they never have before. The changes brought on by COVID-19 are impacting profit, expenses, and the number of employees on teams around the globe. For this reason, a lot of companies are finding themselves struggling to meet their required payment obligations when it comes to the standards outlined by the super guarantee. In this post, we will discuss the implications of missed or underpaid super and what business owners need to know to manage these concerns.
What Is Missing or Unpaid Super?
The super guarantee is a requirement that demands employers to provide an appropriate amount of support for their employees. In most cases, this means meeting a required minimum percentage that is contributed to a super fund or retirement savings account. When an employer does not meet the required minimum percentage for a contribution, it is considering either missing or underpaid.
What Does It Mean If Employers Do Not Meet The Required Amount?
As can be assumed by the fact that a super guarantee is a required payment, this contribution is not actually optional. Employers must meet this minimum payment in order to be in compliance. Since this is the case, when the appropriate amount has not been contributed on behalf of employees, there are penalties that must be dealt with. The penalties for failing to meet the required standard can vary depending on the number of employees involved and the amount that is owed. In every case, employers will want to avoid falling out of compliance. Unfortunately, now more than ever, many are struggling to make the required payments. Fortunately, there is a way that employers can help to rectify the situation.
Utilizing A Superannuation Guarantee Charge Statement
A Superannuation guarantee charge statement is the appropriate legal course to take in order to manage falling out of compliance with super guarantee requirements. While it does not absolve you of not making the payments, it allows you to remain in compliance and pay smaller fees for failing to meet your obligations. The Superannuation guarantee charge must be submitted by 28 November 2020 in order to be accepted. Failing to submit it on time can result in greater penalties that can be detrimental to an already struggling business. Though it is not ideal to grapple with additional fees, it is still better than the alternative.
COVID-19 is hitting many businesses hard and has disrupted the profits that many businesses are claiming. While it can be difficult to manage a loss of business, it is worse when there are penalties and additional fees to contend with. In order to minimize the impact of missing out on the super guarantee requirements, it is crucial to submit your Superannuation guarantee charge statement on time. This will allow you to more easily find your way back into compliance with a manageable set of contributions over time and can help you to trend in a positive direction.