Small business super amnesty deadline looms
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Small business super amnesty deadline looms
Employers participating in the super guarantee amnesty introduced on 6 March 2020 need to apply by 7 September 2020 to avoid penalties.
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Australian Tax Office
The Australian Small Business and Family Enterprise Ombudsman Kate Carnell is reminding small businesses they have until September 7, 2020, to declare any errors in superannuation payments to staff, without facing harsh penalties.
The government introduced the super guarantee amnesty on 6 March 2020, allowing employers to disclose and pay previously unpaid super guarantee charge, including nominal interest, they owe their employees, for quarter(s) starting from 1 July 1992 to 31 March 2018.
Payments made to the ATO before 11.59pm on 7 September 2020 will be tax deductible.
“Small businesses should speak to their trusted, accredited financial advisers now to get their affairs in order before it’s too late,” Ms Carnell says.
“Payment plans are available to small businesses unable to pay the lump sum amount owed, so long as they get on the front foot and make contact with the ATO, before the September 7 deadline.
“However, only payments made before September 7 will be eligible for the tax deduction benefit.
“To qualify for the amnesty, employers have to come forward voluntarily, without direct prompting from the ATO and agree to pay all employee entitlements plus interest.
“Most small businesses already do the right thing, with 95% complying.
“The amnesty will give small businesses a chance to ensure they are compliant because all Australian workers deserve to be paid the entitlements they are owed.
“If you don’t disclose unpaid super under the amnesty and you are found to have been non-compliant, you will face a minimum penalty of 100% of the superannuation owed, have to pay $20 administration fee per employee per quarter and you cannot deduct any payments made.”
More information on the super guarantee amnesty can be found at the ATO website here.
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