Many SMEs do not pay sufficient
attention to the need to carefully manage their superannuation
liabilities.
Every time an employee is paid, unless their gross pay falls below the superannuation threshold (currently $ per week) the company must put aside an amount equivalent of 9% of the employee's gross pay as the company's contribution to their superannuation. Depending on the size of the company's payroll, these contributions must be paid over to the employee's chosen superannuation fund from time to time. It may be monthly or quarterly. If the company has tight cashflow they may be tempted to put off paying over the contributions, opting to use what cash is available to by stock or pay other creditors. For many years companies that do this have got away with little or no penalty. But now things are about to change. The Government has released draft legislation which affects all company directors and intend to introduce the amendments in the winter 2012 sittings of Parliament. The changes are to the penalty regime in the tax law and the proposed amendments involve:
To avoid getting caught each business should have procedures in place to ensure that superannuation liabilities are properly accrued and that their will be sufficient cash available when payment is due. To find out more contact us for a no-obligation free one hour consultation. |
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