Superannuation Amnesty & Payroll Underpayments: Two compelling events align
Universities have until 7 September 2020 to make voluntary disclosures of Superannuation shortfalls to the ATO.
Universities are being urged to undertake a payroll health check, in light of an emerging risk pertaining to:
- Underpayments to casual and sessional staff for overtime and leave loading; and
- The recent Superannuation Amnesty that gives Universities a 6 month window to disclose any superannuation shortfalls to avoid penalties.
Through our extensive work with Universities, we have identified an emerging risk associated with the Enterprise Bargaining Agreement.
Over a seven year period the payroll masterfiles/tables failed to be updated to configure different rates of pay based on the time and hours of overtime worked by casual and sessional staff. Universities are therefore at risk of underpaying these staff members which could have devastating impacts on both finances and reputation.
The Superannuation Amnesty that was announced in the 2018 Budget is now in force.
The Amnesty period includes all Superannuation shortfalls from 1 July 1992 through to 31 March 2018. Employers have until 7 September 2020 to disclose Superannuation shortfalls to the ATO.
What is the impact?
- Underpayment to employees
- Payroll tax underpayment
- Superannuation underpayment
- WorkCover underpayment
- Annual leave loading underpayment
- Penalties arising from underpayments
- Staff morale
- Avoid the administration penalty of the superannuation guarantee charge of $20 per employee per quarter
- Be able to claim a corporate tax deduction for the payment of underpaid super during the amnesty period
- Receive a full reduction of potential penalties that can be up to 200% of the total underpaid super
Action required – how we can help
Given the time restrictions – 7 September 2020 – under the Superannuation Amnesty period, employers should immediately take the following steps:
Get in touch
Through the use of sophisticated data analytics, we can remotely assist you to manage your organisation’s payroll and superannuation compliance risk efficiently, as well as identifying potential savings opportunities.
We use our Complete Tax Solutions (CTS) data analytics tool to review your payroll records to identify any shortfalls or disclosure concerns.
Rest assured that whilst the Government’s social distancing guidelines are in force, we are able to assist you remotely during this period and are able to provide the full benefits of these services to you away from the office. The University and its employee’s privacy and confidentiality are protected, with strong controls in place.
Reach out to one of our ShineWing Australia experts below to discuss how we can support you in your payroll health check.