SuperStream is a new process requiring employers to pay super contributions using the federal government’s new data standards. If you employ 20+ staff you should be ready now. If you have a smaller business you should be putting your plans in place.
Put simply, SuperStream means no more cheque writing when it comes to super payments and employers must provide consistent information about employees whenever they make a super payment. Employers will be required to provide full name, tax file number, gender, date of birth, address, email and telephone number, and will also be required to use a unique identifier for all transactions so they can be traced.
While this sounds like one more piece of red tape, it’s actually good for employers and employees alike.
- Administratively businesses will no longer have to struggle with different requirements with every superfund they pay into.
- The processing of payments will be automated and timely, meaning the money gets into super funds more quickly.
- Fewer accounts will be lost.
Here are the key facts you need to know:
- Employers with 20+ employees must comply from 1 July 2014 (ie/ right now!) The ATO will be flexible about this – but you MUST be seen to be doing your best, and be fully compliant by 1 July 2015.
- Employers with less than 20 employees have an extra year. They are expected to comply by 1 July 2015 and the ATO will remain flexible until 1 July 2016.
- If you use a payroll system provider make sure that their systems will comply with the reporting requirements.
- If you use an internal payroll system and employ 20+ employees make sure your system is adapted. Most payroll packages will have compliance updates available.
- Small businesses with less than 20 staff may be eligible to use the Small Business Superannuation Clearing House, which is a free online service provided by the ATO that allows you to pay contributions to a single destination in one simple electronic transaction.
If you are unsure about these requirements or need assistance updating your payroll system in order to comply with SuperStream please give us a call or send an email. We are always here to help.