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Is your business SuperStream ready?
Small employers (19 or fewer employees) must meet the SuperStream standard by 28th October 2016 - the former deadline of June 30 has been extended today!
Here's what you need to do:
Step 1: Choose an option
Step 2: Collect information and update your records
Step 3: Use Super Stream
Step 1: Choose an option
To use 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 super fund's online system
a super clearing house
a messaging portal.
If the only contributions you make are personal contributions for yourself or contributions to a related self-managed super fund (SMSF), you don't need to use SuperStream because these are exempt contributions.
Payroll system
If you use a payroll system, check with your system provider that it is SuperStream ready. You may need to update your system.
Some payroll systems cover data and payments, and some are data only, which means you may need to make payments to each fund separately. Either way the payment must be electronic (EFT or BPAY).
Your super fund's online system
Large super funds have online payment services you can use. Check with your fund.
Super clearing house
A clearing house pays super to your employees' funds for you. You send a single electronic payment to the clearing house, together with the contribution data for all your employees, and the clearing house does the rest.
If you have 19 or fewer employees, or a turnover of less than $2 million a year, you can use the ATO FREE Small Business Super Clearing House - Find it here
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.
Remember, even if you outsource some parts of making super contributions, you're still responsible for ensuring your employees' super is paid correctly.
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. Talk to your messaging portal provider and financial institution.
Step 2: Collect information and update your records
To use SuperStream you'll need to collect some new information from your employees, in addition to the information you already use to pay super.
Once you have this information, enter it into your system, along with the other details you use to pay super, and you're ready to use SuperStream.
You only need to collect this information for current employees. New employees who choose their super fund will fill out a standard choice form, which will have all the information you need.
Ask your employees for the following information, if you don't have it already:
employee tax file number
fund ABN
fund unique superannuation identifier (USI).
If your employees have a self-managed super fund (SMSF), they need to give you slightly different information:
employee tax file number
fund ABN
fund bank account details
fund electronic service address.
If you're an employer contributing to your own SMSF, you don't need to collect this information for these contributions.
Where to find the information
Employees can find their fund's ABN and USI on their latest super statement or by calling their fund.
You can also find a fund's ABN and USI using Super Fund Lookup -Find it here
However, a fund may have more than one USI so you'll need to confirm the correct USI with your employee.
If you currently make employer contributions to funds using a SPIN you will need to obtain the USI this SPIN corresponds to – you can find this using the Fund SPIN and USI Lookup - Find it here
In a situation that you do not get the information that you need from an employee with an SMSF please refer here
Step 3: Use Super Stream
Start using Super Stream as soon as possible.
Employers with 19 or fewer employees should be Super Stream ready by October 28th 2016 - deadline extended from 30 June 2016 (larger employers should already be using Super Stream).
It may take time to collect the information and get used to the new system. If any information is incomplete or incorrect, the super payment is likely to be rejected.
It's still up to you to meet your super guarantee obligations by the due dates.
If you're using a clearing house, check how long they will take to send the money and information to the super fund. Generally an employee's super contribution is counted as being paid on the date the fund receives it, not the date a clearing house receives it from you.
If you require any further information on Super Stream please call our office on 07 5502 6673
