8.1 Employer failures

Australia | Commentary

8.1 Employer failures

Australia | Commentary

8.     Non-compliance to withholding requirements

8.1     Employer failures

Failure to withhold and remit PAYG from employee wages is an offence under Sections 16–25 of Sch 1 to the Taxation Administration Act 1953 (TAA). The maximum penalty is AU$2,100 per offence.

Under Sections 16–30 of the TAA, the employer must also pay an administrative penalty to the Australian Taxation Office, ATO, equal to the amount not withheld.

Superannuation guarantee charge

Employers that do not pay superannuation guarantee contributions on time are required to pay the superannuation guarantee charge and lodge superannuation guarantee statements (1.1.3). The superannuation guarantee charge has three

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