March 7, 2016
SuperStream is compulsory for all employers from 01 July 2016. That’s only 4 months away!
We recommend that employers become SuperStream ready sooner rather than later. With the next quarterly payment due on 28 April 2016, now is a great time to get your systems set up, check they work for the next payment, so you can see the deadline come and go worry free.
SuperStream is a system where super contributions for employees are transmitted electronically (either EFT or BPay) and associated data is also sent electronically.
1. Upgrading your current payroll software.
Contact your software provider and check if the version you are using is SuperStream ready. If not, you may have to update your software.
2. Using your super fund’s online system
Larger superannuation funds (such as industry funds) have their own systems you can use. Check with your default super fund if they have such a service.
3. Using a clearing house
The ATO has a free clearing house available to employers with less than 20 employees or a turnover of less than $2 million per annum. Retail funds may also offer a clearing house.
In order to use any of the above options, you must have the following for each employee;
– Their tax file number (you should have this from paperwork when they commenced employment with you)
– The Superannuation Funds ABN (you can use Super Fund Lookup at http://superfundlookup.gov.au to find the ABN)
– The Superannuation Funds USI (Unique Superannuation Identifier). The Superannuation Fund will be able to notify you of this number, it will be on the members latest statement of benefits or you can use the Super Fund Lookup facility mentioned above. (http://superfundlookup.gov.au/Usi.aspx )
If an employee has a self managed superannuation fund, you will also require;
– The Superannuation Funds bank account number
– The Superannuation Funds ESA (Electronic Service Address)
It’s a little bit of work to set up, but will save time each quarter.
A word of warning though! If you are using a clearing house, (other than the ATO clearing house) check their time frame in sending information and/or payments to the relevant superannuation funds. In order to comply with the law, the contributions must reach the Superannuation Fund by the 28th day following the quarter to which they relate. This may mean you transfer the data and money to the clearing house up to 10 days before the due date to allow for processing.
If you use the ATO clearing house, your superannuation guarantee obligations are met on the date the ATO clearing house accepts them. (provided the superannuation fund doesn’t reject the payment)
There are a couple of exemptions to the SuperStream requirements;
– If you make contributions to your own self managed super fund ie you are a related party employer
– You make personal contributions ie you are a sole trader contributing to a superannuation fund.
Of course, if the above seems overwhelming, we are more than happy to assist you.