If you work as a GP or are involved in running a general medical practice you would be aware of the various state revenue offices reviewing the payment methods of GP practices and the application of payroll tax legislation regarding those payments.
STAPLED SUPER FUNDS
From 1 November 2021, employees have their existing super funds "Stapled" to them - Stapled Super Funds
This means that if employees do not provide super fund details to their employers, employers are able to discover the employee’s Stapled Super Fund from the ATO
WHY IS THIS GOOD?
· Reduces individuals having multiple superfunds, thereby reducing their super account fees
· As an employer, you are no longer stuck waiting for your employee to give you their super details, resulting in super being paid late and therefore not tax deductible
WHAT IF I DON'T PAY SUPER ON TIME?
Did you know that directors are personally liable for unpaid SGC?
If you pay late, you are required to complete late payment forms, pay additional admin fees, interest and penalties of up to 200% of the outstanding super amount.
When you have a new employee start, pay their super with their first payslip
· Gives you additional time to fix their super details if it bounces back
· Ensures you’re going to get a tax deduction for the SGC
· Only disadvantage is cashflow – but the advantages outweigh the inconvenience
Pay within 7 days at the end of month (if cashflow allows); or
Set up calendar reminders to pay within 28 days at end of quarter
HOW CAN I MAKE SGC WORK FOR ME?
Paying your employees super is a tax deduction for your business. Make sure you pay it on time and for the June quarter, pay it before 30 June. Remember – Super is only deductible when paid on time.