Industry rumour has it that The Australian Taxation Office is on the warpath for small business in what may be one of the biggest employee overhauls ever seen and it is going to be epic.
An analysis by Industry Super Australia submitted to the Economics References Committee into Wage Theft and Superannuation Guarantee Non-compliance, indicates that employers failed to pay an aggregate amount of $5.6 billion in SG contributions in 2013-14. On average, that represents 2.76 million affected employees, with an average amount of over $2,000 lost per person in a single year. The ATO’s own risk assessments suggest that between 11% and 20% of employers could be non-compliant with their SG obligations and that non-compliance is “endemic, especially in small businesses and industries where a large number of cash transactions and contracting arrangements occur.”
The progression into full scale investigative actions go from there. You do not want to be red flagged by the ATO, and you need to fall within the benchmark expected. All it takes is one employee to make a complaint and the next thing you get the audit call.
What does this mean for you and your business? To help you work out where you are sitting, GTS have put together this checklist.
- Are all of your employees registered with a super fund?
- Have you registered your business with a Clearing House?
- Are you providing your employees with payslips every pay period?
- Are you making the correct contributions?
- Is your Super Financial Reporting accurate?
- Have you paid everyone correctly?
- Are you on board with the latest awards? Have there been changes?
- Is your annual leave accrual process up to scratch on the payslips and your internal records?
- Are all of your company details accurate on payslips?
- Are you paying your employees the correct award or do you have a EBA?
If you are not adhering to Super laws, you are in for some trouble. The penalties are high, tedious and stressful. For example if you are the director of a company that fails to meet an SGC liability in full by the due date automatically becomes personally liable for a penalty equal to the unpaid amount.
GTS are now offering for a limited time a fully customised Super Health Check, we will undertake a complete Audit of your set up and target key areas for attention and recommended actions and strategies. Call Glenn now on to book yours. March is the time to ACT!