You need to get SuperStream ready now
In less than two months time, SuperStream becomes mandatory for all business – including small businesses with fewer than 19 employees.
So what is SuperStream?
SuperStream is a reform introduced by the Government to improve the processing of superannuation contributions.
By 30 June, all employers will need to pay their employees’ super using SuperStream.
Under SuperStream, you need to pay your employees’ super electronically (EFT or BPAY) and send the associated data electronically.
The data is in a standard format, meaning you can make all your contributions in a single transaction, even if they are going to multiple super funds.
What are the benefits?
SuperStream relieves a major time burden for employers and reduces inefficiencies in processing.
It will reduce the time you spend making employee contributions by approximately 1.5 hours per cycle.
Utilising SuperStream will improve the quality of data in the system, allow the use of Tax File Numbers (TFN) to be the primary locator for accounts, improve the way funds are rolled over and create a simpler way of processing contributions.
How do I use SuperStream?
You can find a step-by-step guide to implement SuperStream here. But here’s a brief overview on what you need to do:
First up, you need to choose an option on how to pay super and send employee information electronically. You options include:
Using a payroll system that meets the SuperStream standard – check with your system provider.
Use your super fund’s online system – large super funds have online payment services you can use.
Use a super clearing house – a clearing house will pay your employees’ super for you. If you have 19 or fewer employees, or a turnover of less than $2 million a year, you can use the ATO’s free Small Business Super Clearing House.
Use a messaging portal – a messaging portal can convert contribution data for your employees to a SuperStream compliant format and send it to the relevant funds for you. You still need to make one electronic payment.
If the only contributions you make are personal contributions for yourself or contributions to a related SMSF, you don’t need to use SuperStream because they are exempt from contributions.
Next you need to update your employee records and collect some new information.
Ask you current employees for:
Employee tax file number
If your employees have a SMSF, you need to request:
Employee tax file number
Fund bank account details
Once you have all the information, you just need to enter it into your system along with the other details you use to pay super.
Start using SuperStream.