Industry Super Funds have been making a fair amount of noise to employers about the changes for the reporting and payment of employee superannuation contributions.
What is SuperStream?
SuperStream is the new process for paying employee super, which is a fully integrated electronic solution. In simple terms, this means all payments into super funds will be made electronically, just like EFT, so no more cheques.
The information details attached to the payment will be standardised across all payers, with the employees Tax File Number being the main identifier to ensure contributions flow to the correct accounts, streamlining the process and reducing the number of “lost” super accounts.
Every employer will be impacted by the changes, but for those who employ 20 or more persons, the deadline for compliance was 31st October 2015.
For all other employers, the deadline is 30th June 2016. We recommend employers make a start on complying no later than 1st March 2016 (for small employers), to ensure that they give themselves enough time to adapt their existing systems and ensure that any issues are resolved prior to the deadline. If you’re a large employer, you should already be making payments in accordance with SuperStream.
How do I become compliant?
If you’re using a mainstream accounting product (e.g. MYOB, Xero, Quickbooks), chances are that you software vendor has already ensured that your product is capable of transmitting the correct data to the ATO. Alternatively, if you outsource your payroll to a third party provider, they too, should already be compliant.
Make use of offers from your employer industry funds to act as your internal clearing house. This means that you can make one single payment to the fund and allow them to distribute the contributions to the specific member accounts, usually free of charge. All of your employees don’t even have to be with the same fund, so take advantage! Similarly, the ATO has its own Small Business Clearing House for employers with fewer than 20 employees which you can access.
Contributions between related employers and self-managed superannuation funds will be exempt from the new rules, but if you are paying super contributions on behalf of an unrelated employee into their SMSF, the above rules will still apply. These employees should have already contacted you with their SMSF details for making payments, including the new Electronic Service Address (ESA).
If you need further information on becoming compliant, industry funds are your best source of information, or alternatively, speak to your McLean Delmo Bentleys advisor.Mandy Findlow
Manager - Business Services