Stressed employers miss super guarantee payments
A number of Australian employers who have found themselves financially stressed as a result of the global financial crisis have fallen foul of the Australian Taxation Office (ATO) by failing to meet their pay-as-you-go (PAYG) withholding tax and superannuation guarantee obligations.
ATO second commissioner, Bruce Quigley, has told a Tax Institute conference that of the 6,013 high-risk employers reviewed under the ATO's so-called Employer Obligations audit program since 1 July last year, over 4,600 had not complied with their PAYG withholding obligations, and almost 3,000 had not met their superannuation guarantee obligations.
He said that evidence suggested when times were tough businesses were tempted to cut corners to stay afloat and prop up their cash flows.
"When businesses start to experience difficulties, they should contact us as soon as possible to work out a better, fairer strategy to address their financial problems," Quigley said.
"Using money that is an entitlement of their employees is not the answer, and is only going to land them in hot water down the track."
AUTHOR
Mike Taylor
Recommended for you
Results are out for the latest sitting of the ASIC financial advice exam, with the pass rate falling for the second consecutive sitting.
Adviser losses for the end of June have come in 143 per cent higher than the same period last year, and bring the total June loss to over 350.
ASIC’s enforcement action is having an active start to the new financial year, banning a former Queensland financial adviser for 10 years in relation to fees for no service conduct.
ASIC has confirmed the industry funding levy for the 2024–25 financial year, and how much licensees can expect to pay.
