21 Feb Are you Super Stream Ready?
With the 30 June 2016 deadline rapidly approaching, the ATO is encouraging small businesses to be Super Stream ready, but what does this actually mean?
To put it simply, employers will be required to send all Superannuation payments and employee information electronically in a standard format. In the past ( and with the changes to the law in 2005 allowing employees a choice of fund), most employers have had to process employee super contributions to numerous funds in different formats. This resulted in significant increases in administration time and costs.. With SuperStream you only need to make one electronic transaction to cover all your employees.
If you run a small business that has 19 or fewer employees, you have until 30 June 2016 to start using SuperStream, and are encouraged to make this a priority.
ATO Deputy Commissioner James O’Halloran says that “Some small business owners, who are currently using SuperStream, have reportedly cut time spent on super processing by around 70 per cent each cycle”.
“We recognise that businesses operate differently and that’s why there’s more than one SuperStream option to choose from. This enables individual employers to select how SuperStream best fits into your business” says Mr O’Halloran.
To be compliant with 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 superannuation fund’s online system
- a superannuation clearing house
- a messaging portal
You can also ask your accountant or bookkeeper to help you with one of these options.
The ATO offers a free clearing house to manage your superannuation payments and be compliant. You can register with the Small Business Clearing House via the ATO website. Note that this service is only available to small businesses with 19 or fewer employees, or a turnover of less than $2 million a year. 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.
Be sure that you have all of your employee’s, details and their individual superannuation fund’s details prior to registering. It will take some time to setup, especially if you have a higher number of employees, but once it is, it will definitely save processing time in the future.
If you need further assistance, the ATO runs a series of free webinars to help small business owners set up and use SuperStream. Getting on board now will give you plenty of time to check that things are running smoothly before the SuperStream deadline.
Visit the ATO website for specific dates and times.