Accountants urged to get clients on the front foot with late SG payments

“Last year, we saw many clients who were caught out by the new data-matching system over the Australia Day long weekend,” Mr Howlett said.

“We expect that number to increase significantly now that the Single Touch Payroll system has been expanded to cover all employers.

“We need to send a strong message to employers before they go on holidays that they need to manage their payroll and bring forward their superannuation guarantee payment date three or four days earlier to give themselves room for error.”

Mr Howlett believes directors should be fully across the SG regime, previously criticised as “draconian”, to ensure they were aware of their obligations.

“There is no doubt the penalty is disproportionate to the crime,” Mr Howlett said.

“Even though you may pay superannuation to your employees one day late, the problem isn’t fixed. If you’re late, you not only have to pay the late super, but you also need to lodge the superannuation guarantee charge (SGC) form, otherwise interest will continue to accrue.”

He added: “The director of a company who fails to meet a SGC liability in full by the due date automatically becomes personally liable for a penalty equal to the unpaid amount.

“Superannuation penalties are a big one and directors need to know that they can be personally liable for penalties and interest for not paying the super on time.”