If your company doesn’t pay super on time for employees (and some subcontractors), directors become personally liable to make the payment.
ATO says: Company directors are responsible for ensuring their company’s tax and super obligations are reported and paid on time.
If your company has an overdue debt, and doesn’t pay the amount owing or make other arrangements, we (ATO) may issue a director penalty notice (DPN).
DPNs are issued to current directors and anyone who was a director at the time the company failed to pay. They make the director personally liable if a company has failed to meet its pay as you go withholding, goods and services tax and superannuation guarantee charge obligations.
If you receive a letter, or your company has a debt, you need to arrange to pay the overdue amount or enter into a payment plan.
If you are facing financial hardship or need more time to pay any overdue debts, contact the tax office or your tax professional to discuss your situation.
April – June super must reach the fund of your team on or before 28th July – it takes longer than you think to arrive, so authorise the payment now!
