In the past, you were able to simply pay all superannuation contributions by using the BSB code and account numbers of your employees’ superfund without any issue, but this will change from 1 2015.
Without going into too much jargon. Here are some quick points to note:
- If you have 20 employees or more, you have to fulfil all requirements by no later than 30 June 2015. If you have 19 or fewer employees, the requirements will be applicable to you from 1 July 2015 but you have until 30 June 2016 to be fully compliant. To be safe, do it now.
- If you are using Xero, set up automatic superannuation payments. If you have a premium account, it will be free. You can find detailed instructions here.
- If you are using MYOB, you are able to process them through M-Powered Superannuation Service by calling MYOB or through the website. Note, this is not a free service.
- If you have 19 or less employees and don’t have payroll software. I recommend you try Small Business Superannuation Clearing House. A detailed “how-to” is listed in session below. Or, you can create an employer account for each industry fund of your employees.
Compliance dates and actions
If you are an employer with 20 or more employees:
- SuperStream started on 1 July 2014
- You should have started to implement SuperStream, or be making a genuine attempt to implement and have a firm plan to do so
- If you have not started to implement SuperStream or have no implementation plan in place, please make sure you contact your payroll service provider to check that your super contribution solution is SuperStream ready
- You MUST ensure SuperStream is implemented by 30 June 2015.
If you are an employer with 19 or fewer employees:
- SuperStream standard applies from 1 July 2015
- ATO will provide flexibility for you on your start-up date, provided you do your best to implement after this date and have a firm plan to do so by 30 June 2016.
For all employers
- Penalties may apply where an employer fails to comply with SuperStream standards.
Options to Meet SuperStream
Employers have options for meeting SuperStream, either using software that conforms to SuperStream, or using a service provider who can meet SuperStream requirements on your behalf. It is highly recommended that you start investigating your options now.
Your options may include the following:
1 upgrading your payroll software
2 Using an outsourced payroll function or other service provider
3 Using a commercial clearing house or the free Small Business Superannuation Clearing House (19 or fewer employees).
Small Business Superannuation Clearing House (SBSCH)
The Small Business Superannuation Clearing House (SBSCH) is a free, online service that helps small businesses (with 19 or fewer employees) meet their super guarantee obligations.
You just need to register your business online. A user ID and link to set up your password will be emailed to you. Before you start the process, please ensure you have your Australian Business Number (ABN) handy and your email address ready . You will need these to register your business.
Please click the following link to register your business with SBSCH: https://sbsch.gov.au/poext/super/public/registration/employerRegistration.jsf
The clearing house allows you to pay your super contributions in one transaction to a single location. It is designed to make the payment process easier, reduce red tape and compliance costs.
You also need to register your employees’ super fund details so that the contributions will be distributed to their various super funds through the clearing house.
Employees with a SMSF
After you activate your account go to the employee you want to update, click on “add choice fund” (or default fund if your organisation uses the same SMSF already). Here are some hints to make this easier.
Put in ABN or USI (SPIN) into the field, then click on search. Select the fund you need.
Before you click on “submit” to save. Filling in following information:
- Put in the bank details for the SMSF.
- Edit SMSF ESA (Electronic Service Address)
- Then the member number.
To check if your SMSF is set up correctly go to http://superfundlookup.gov.au/ to find out more details. Or your accountant will confirm it for you.
Information required to conform to SuperStream
Employers need to collect the following information that will be included in their payroll system:
- Unique superannuation identifier (USI) for APRA-regulated funds
- ABN for SMSF funds
- Bank account details
- Electronic service address
If you have an employee who is a member of a Self-Managed Superannuation Fund (SMSF), they must provide you with the following details of their fund:
- ABN of the SMSF
- Bank account details
- An electronic service address
If you have not been provided with sufficient details for the choice fund, you may redirect their contributions to the default fund of the employer.
If you are unsure if your business meets SuperStream standard, please do not hesitate to contact our office.