Payday Super DPN Risk: Checks for Physio Clinic Directors

Payday Super is now in place.

This week, Accountants Daily reported that there is still uncertainty about director penalty notice risk under Payday Super. The ATO also updated its Payday Super resources.

If you own a physio clinic through a company, this matters.

Late super is not just a payroll problem. It can become a director problem too.

What is the risk?

A director penalty notice can make a company director personally liable for some unpaid amounts.

That can include super guarantee debts.

For a clinic owner, this means you should not treat super as something to clean up later. The safer habit is to check each pay run while it is fresh.

Check super before wages go out

Before you approve wages, check the super that goes with that pay run.

Look at:

• ordinary time earnings
• super rate
• employee details
• super fund details
• payroll category
• payment date
• payment status

This is boring work. But it is easier than fixing a late super problem later.

Do not rely on memory

Many clinic owners have a lot happening at once.

You may be seeing patients, managing staff, checking rosters, and paying bills. It is easy to think, “I will check super later.”

That is how small mistakes grow.

Use a simple payroll checklist. Keep it in the same place each pay run.

For each pay run, write down:

• wages paid
• super amount
• date sent
• whether the payment cleared
• any error message
• who fixed it

A simple spreadsheet is enough.

Watch cash flow

Payday Super changes the cash habit.

If wages go out today, the super cost should be treated as spent too.

Do not use that money for rent, stock, equipment, or loan payments.

Ask this question before each pay run:

“Can the clinic pay wages and the related super now?”

If the answer is no, the clinic has a cash flow issue. It is better to face it early.

Check new staff and changed roles

New staff can cause mistakes.

In a physio clinic, that might be:

• a new receptionist
• a new graduate physio
• a casual weekend worker
• a contractor who has become an employee
• an admin person who has changed hours

Check these people first. Make sure the payroll file is right before the pay run.

What to do this week

Pick the next pay run.

Do one clean check from start to finish. Do not wait for quarter end. Do not wait for a reminder from the ATO or your accountant.

If your clinic is run through a company, directors should know that super is being paid on time and that failed payments are fixed fast.

That is the main point.

Payday Super is now a weekly or fortnightly discipline. Treat it like part of payroll, not a bill for later.

Sources: Accountants Daily, “No clear guidance, no room for delay: managing lockdown DPN risk under Payday Super”; ATO, “Payday Super resources”.