PHARMACY owners are being warned to review their payroll operations after audits by the Australian Taxation Office (ATO) have uncovered superannuation guarantee (SG) compliance failures among businesses using a firm once linked to a major wholesale group.
Industry sources have confirmed that a number of pharmacies have been issued bills in excess of $1 million by the ATO in relation to the SG breaches, after the payroll business underpaid, and in some cases, did not pay mandatory super contributions for employees.
One pharmacist told Pharmacy Daily that owners impacted by the audits were reluctant to raise the issue with the Pharmacy Guild of Australia due to concerns that could lead to disputes with their banner groups.
An accountant with a number of clients who have been found to be in breach of the SG as a result of the payroll business's practices has warned that the crisis could push a number of affected pharmacies into bankruptcy if a favourable deal is not reached with the ATO.
While bankruptcy could protect pharmacy owners from other debts, the accountant noted that as directors of their businesses they would be personally liable for any unpaid super contributions, even if they were declared bankrupt.
The accountant advised owners to ensure they are using a registered clearing house to pay employees' superannuation, adding "if you're using bookkeeping software, use that to pay super", rather than a third-party.
Pharmacy Daily understands that at least one banner group has issued a warning to franchisees about using the payroll company, advising them to contact the ATO to ascertain whether super contributions have been paid into employees' super funds, and to contact the group if any irregularities are uncovered.
The above article was sent to subscribers in Pharmacy Daily's issue from 02 Dec 20
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