If you don’t pay the minimum super guarantee in full and on time for your employees’ benefit, you are liable to pay the super guarantee charge (SGC). You can also be liable for this charge if you don’t correctly follow the choice of fund rules.

The ATO use information you report through Single Touch Payroll (STP) and information reported by superannuation funds to work out:

• how much super guarantee you need to pay for each eligible employee
• whether it was paid on time.

This helps identify any missed, late, or underpaid super contributions.

If you have made insufficient super contributions, you should make any late contributions directly to your employee’s super fund, if you have not received an assessment from the ATO.

If the ATO identify late or incorrect contributions, they will make an assessment for your SG charge and send you a notice of assessment. If you receive a notice of assessment from the ATO, you will need to pay the SG charge to the ATO, not to the super fund.

If you realise you’ve made a late or incorrect contribution, you can lodge a voluntary disclosure statement and let the ATO know as soon as possible. Early identification and advising the ATO may reduce your SG charge.