SuperStream is a Government reform requiring employers to pay their employees superannuation contributions using the government's new data standards. In layman's terms, it means all superannuation contributions need to be made and recorded electronically – no more cheque writing. Cheque payments will not be accepted after 30 June 2016 and super funds will return any payments made by cheque. This will also result in you being non-compliant and may result in ATO imposed interest and fees.
Employers will have to comply with following two things under SuperStream:
1. The payment must be made electronically to the nominated superfund.
2. Details of the payment transactions, such as employee name, Tax File Number and Super Fund member number are also sent to the superfund.
What does this mean for you?
Small employers (19 or fewer employees) must meet the SuperStream standard by 30 June 2016. Here's what you need to do:
1. Choose an option
· Super clearing house
A clearing house pays super to your employee's funds for you. You send a single electronic payment to the clearing house, together with the contribution data for all your employees, and the clearing house does the rest. If you have 19 or few employees, or a turnover of less than $2 million a year, you can use the ATO's free Small Business Super Clearing House. Julie uses the ATO's free Small Business Super Clearing house, she has found if effective and efficient. The team at WCC have also assisted clients to register for this clearing house.
· Your super fund's online system
Large super funds have online payment services you can use. Check with your fund.
· Payroll System that meets SuperStream standards
If you use a payroll system, check with the system provider that it is SuperStream ready. You may need to update your system.
2. Collect information and update your records
To use SuperStream you'll need to collect some new information from your employees, see below, in addition to the information you already use to pay super.
Once you have this information, enter it into your system, along with the other details you use to pay super, and you're ready to use SuperStream.
You only need to collect this information for current employees. New employees who choose their super fund will fil out a standard choice form, which will have all the information you need.
Ask your employees for the following information, if you don't have it already:
· Employee tax file number
· Fund ABN
· Fund unique superannuation identifier (USI)
If your employee has a self-managed super fund (SMSF), they need to give you slightly different information:
· Employee tax file number
· Fund ABN
· Fund bank account details
· Fund electronic service address
3. Use SuperStream
Start using SuperStream ASAP, with only just over three months left, this will enable you time to get used to the system prior to 30 June 2016.
As employer, it is still up to you to meet your super guarantee obligations by the due dates.
Handy Tip - * If you're using a clearing house, check how long they will take to send the money and information to the super fund. Generally an employee's super contribution is counted as being paid on the date the fund receives it. Not the date a clearing house receives it from you.
Now is the time to finalise your plan for SuperStream and start processing your first employer contributions using SuperStream.
We understand moving electronic can be overwhelming and confronting, and the information out there can be wordy and confusing. Just remember everyone is in the same position as you, the steps are really quite easy, and once the initial work of getting your SuperStream up and running is completed, the paying of superannuation process may seem easier.
The team at West Currie Consultants are here to assist you in any way you may need to ensure you are comfortable with SuperStream and continue to be Super Compliant.
Call us today on 55 851 522 or email firstname.lastname@example.org for information or further assistance on being SuperStream compliant.