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Superstream Fact Sheet for Employers

By on May 29, 2015

JOHN PITITTO, Partner for Mead Partners – Chartered Accountants provides an update on SuperStream.

What is SuperStream?

SuperStream is a new initiative to streamline the payment of superannuation contributions by employers on behalf of their employees. Data and payments are made electronically to super funds (including SMSF’s) according to standards set by SuperStream.

The improved system ensures all employers are sending the correct super contributions at the right time. Paper remittances and cheques are no longer accepted. Electronic payments to super funds made according to SuperStream guidelines create a standard system for all employers. This should also make reconciliations for employers and super funds simpler and more efficient.

How does it affect you?

Employers with 19 or less employees:

  • You must implement SuperStream by 1st July 2016 but you can do so earlier; and
  • You are entitled to free use of the ATO’s Small Business Super Clearing House (SBSCH).

The SBSCH allows employers to pay all employee super contributions at the onetime, to one location.

What do I do?

  • Register your employee’s super fund details with the clearing house (including SMSF’s);
  • Make one electronic transaction to the clearing house compromising the total of all super contributions for the period;
  • The SBSCH distributes super contributions to employee super funds as instructed; and
  • Small businesses no longer need to make individual payments to every super fund their employees belong to. Just one payment to the SBSCH takes care of your super obligations.

Employers with over 20 employees:

  • Super Stream must be implemented from the 1st July 2015;
  • Upgrade your payroll software to meet SuperStream requirements. If you require assistance with this we are MYOB and Reckon approved; and
  • If payroll is outsourced you are obligated to check your provider is updating their processes to be compliant with SuperStream.

If you do have over 20 employees and you wish to streamline your obligations by using a clearing house that is fine but you will not be eligible to use the free SBSCH service. You can use approved clearing houses such as MYOB if you use that software for payroll. You may also contact your Nominated employee super fund as they can offer clearing house services for a fee.

Summary:

If you employee staff and fall into the above categories then you need to have the following in place:

  • A software system that conforms to SuperStream or using a service provider who can meet SuperStream on your behalf i.e. a clearing house.

You will be required to have the following data from superannuation funds:

  • Unique superannuation identifier (USI) for APRA – regulated funds;
  • The Funds ABN;
  • Bank Account Details (SMSF);
  • Electronic service address; and
  • Employee TFN.

If you have any questions on the information contained above or require assistance in ensuring you are compliant please do not hesitate to contact Mead Partners (03) 9523 2277 for assistance.

 

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