Login
iscover
Forgetting to pay out superannuation payable accounts before the end of financial year could be costly for businesses and is something overlooked by many accountants, warns an accounting firm.
Newsletter
Super payables overlooked at EOFY, accounting firm warns
11 May 2018
•
9 minute read
You’re out of free articles for this month
To continue reading the rest of this article, please log in.
Create free account to get unlimited news articles and more!
The due date for super payments in Q4 of 2017-18 will be 28 July and, according to the ATO, if super payments have not been paid on time and to the correct fund, businesses may have to lodge a superannuation guarantee charge (SGC) statement and pay the SGC charge.
However, Accodex Partners chief financial officer, Caitie Copley, told Accountants Daily that unpaid super also moves from a payable to an expense, which is then added back onto the business’s tax in the next financial year.
Further, she said it is “unfortunately not something that is taught at university”, meaning it is something that can be very easily overlooked by many accountants and their business clients.
“It doesn't come to mind straight away when you think of expenses that you can claim, and the fact that the payable gets added back on,” she said.
“You might have an expense of $15,000 for super, but you've got an unpaid balance of $5,000, so it actually gets added back because you technically haven't paid it, meaning you don't get an expense for it.
“I think it's really important to pay down that superannuation payable balance, and it's a nice little expense deduction on your tax return. That lowers your taxable income, which is great.”
==
==
Ms Copley is nominated for Rising Star of the Year at this year’s Accountants Daily Australian Accounting Awards.
You are not authorised to post comments.
Comments will undergo moderation before they get published.