Are you SuperStream compliant?
If you employ people in your business, all superannuation payments must be made in accordance with the ATO’s new electronic data and payments system, SuperStream.
Medium and large employers (20 or more employees) are required to be SuperStream compliant by 31 October 2015, but for small employers (19 or fewer employees) this deadline was extended to 28 October 2016 and is fast approaching!
According to the ATO there is still 25% of small businesses that haven’t adopted SuperStream and the ATO has already announced there will be no further extensions.
SuperStream was first introduced in 2014 to require employers to transmit certain employee data (in a standard format) along with their payments to make superannuation simpler. The benefits of the system include using one payment system for multiple funds, easier data entry and less chance of error as well as the payments reaching the employee’s super funds faster.
The time has come to review your payroll or superannuation payments system to ensure you are compliant.
If you are a small employer, you have the option of using a Clearing House to make payments and ensure you are SuperStream compliant. There are several options available for Clearing Houses, including the ATO’s own free version, as well as larger superannuation providers such as Australian Super. Once you set up your business information on the system, including the required employee details, your superannuation payments are quick and easy to make and you have the peace of mind that you are SuperStream compliant.
We note that there are two types of contributions that are exempt from the SuperStream system;
- If you are a related-party employer (e.g. family business) and you make contributions to your own Self-Managed Super Fund (SMSF)
- If you are a sole trader and you make personal contributions to a super fund