One day late is sufficient to remove deductibility, so, for example, if payment is made after the close of business on the 28th day after the end of the quarter or month, then no deduction will be allowed.
In addition to losing a substantial tax deduction you will also be subject to the following issues:
• You will be required to lodge a superannuation guarantee charge statement with the ATO.
• Interest and administration fees will be added. They too are not deductible.
• You will be required to pay superannuation on employee overtime (not the case if paid on time)
Who will ever know if I pay late? The answer to that is just about everybody involved. Employees, every Super fund you remit to and, of course, our good friends at the ATO if they care to look. The simple fact is that late payment leaves a permanent, indelible paper trail.
At Irish Bentley, we regularly see ATO audits triggered by employee or ex-employee complaints.
In summary; this is one payment that should never be made late under any circumstances. Please ensure that this payment is prioritised whether it is a monthly payment or quarterly payment.