SuperStream makes processing contributions Super Easy
The Tax Office has introduced SuperStream which is a mandatory obligation for businesses that employ staff.
What is it?
SuperStream is a government reform aimed at improving the efficiency of the superannuation system. While the phase ‘government reform’ can often mean additional red tape, SuperStream should actually save businesses time in processing their superannuation payments.
Until now processing your employees’ super often meant making lots of payments to different funds in different ways. Depending on how many employees you have this can be very time consuming.
With SuperStream all your employees’ superannuation data and payments are made electronically, in a single transaction through one channel. Even if your employees have different superfunds only one transaction is required, this is where businesses should enjoy significant time savings.
Three choices are available to ensure you are compliant with SuperStream.
Super Clearing House
A clearing house will receive the single payment of your employees’ super contributions as well as data relating to your employees. That’s the end of your super processing obligations.
The clearing house will then allocate the contributions to your employees’ relevant superfunds.
The Tax Office offers a free clearing house which is simple to install and use, while larger industry and retail superfund also offer clearing houses.
Superfund Online System
Your existing default superannuation fund may offer an online system that is SuperStream compliant. You will need to enquire with your superfund to see if they offer a SuperStream solution.
Many of the cloud payroll software providers such as Xero, MYOB and QuickBooks are SuperStream compliant. Once registered and all relevant information entered, you can process SuperStream at the click of a button. Like the above options only one payment for all your employee super contributions is made.
It is important to check as SuperStream may only be integrated with the software providers ‘premier’ software options.
If you have 19 or fewer employees it is compulsory to be SuperStream compliant by 30 June 2016. For larger employers you should already be SuperStream compliant.
The next step
We have assisted many of our clients become SuperStream compliant. Don’t hesitate to contact our office for advice on which option is best for your business and for help with implementation.