SuperStream, the new electronic reporting and payment for superannuation, starts for all businesses with employees from the 1 July 2016. Do you understand what you need to do to avoid a hefty ATO fine? This article will make it clear.
All Employers need to be SuperStream ready by 30 June 2016. If you aren’t the Australian Tax Office can take action including issuing penalty notices of up to ten penalty units, or $1800.
So what do you need to do to comply?
SuperStream – the standardisation of how employers make super contributions on behalf of their employees – involves employers sending all super payments and employee information electronically in a standard format.
If the only contributions you make are personal contributions for yourself or contributions to a related self-managed super fund (SMSF), you don’t need to use SuperStream because these are exempt contributions.
To use SuperStream you may need to collect some additional information from your employees. You only need to collect this information for current employees. New employees who choose their super fund will fill 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 employees have 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.
To use SuperStream, you need to pay super and send employee information electronically. If you’re already doing this, you may only need to refine your system to send the contribution data in the standard format. You can use:
- a payroll system that meets the SuperStream standard
- your super fund’s online system
- a super clearing house
A Payroll system:
For those currently using Xero then we can assist you with the set up process, please contact us to organise a time to update your payroll.
For other payroll systems, check with your system provider that it is SuperStream ready. You may need to update your system.
Please feel free to contact us if you would like any information on transferring or trialling Xero.
Your superfund’s online system:
Large super funds have online payment services you can use. Check with your fund.
A Super Clearing House:
A clearing house pays super to your employees’ 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 fewer employees, or a turnover of less than $2 million a year, you can use the ATO free Small Business Super Clearing House.
You can also choose from several commercial options, or your super fund may have a clearing house you can use. Talk to your fund to see what they offer.
Remember, even if you outsource some parts of making super contributions, you’re still responsible for ensuring your employees’ super is paid correctly.
Start using SuperStream as soon as possible. Starting sooner than the deadline means you can enjoy the benefits sooner and also ensure your systems running smoothly before the 30th June 2016 deadline.
If you have any questions or need some help setting up for SuperStream please call our office on 03 5783 3440 or make an appointment to come in and see us.
