Employers that have underpaid compulsory superannuation up to 31 March 2018, and who did not take advantage of the amnesty, will now generally be subject to a base penalty of between 100% and 200% of the superannuation guarantee charge (SGC).
The ATO previously had a broad discretion to remit penalties. However, the legislation now generally prevents the ATO from remitting penalties below 100% of the employer’s SGC for quarters that were covered by the amnesty.
One exception, which allows the ATO to remit penalties below 100%, is where the employer makes a voluntary disclosure.
We see many cases where employers attempt to comply with their compulsory superannuation obligations but are caught by complexities in the law. The minimum 100% penalty for those historical quarters will be a harsh result in these cases.
In this webinar, partner Fletch Heinemann will work through a series of case studies to discuss:
- what amounts are ‘ordinary time earnings’ and subject to compulsory superannuation
- specific problems around overtime and ‘ordinary time earnings’
- when annual leave loading is and isn’t subject to compulsory superannuation
- recent examples of when individual contractors have been considered employees
- when genuine contractors are still entitled to compulsory superannuation
- a step by step plan to help you identify risks and resolve problems.
After this webinar, you should be able to identify the main superannuation guarantee risks, and take steps to avoid hefty penalties.