SuperStream: Important information for Business Owners.
The Australian Government has made changes to the way employers make super contributions. This new initiative is called SuperStream.
If you have 20 or more employees you must become SuperStream compliant between 3 November 2014 and 30 June 2015. If you’re still finding your feet, that’s ok. Just ensure you talk your Accountant so we can ensure you don’t receive any unwanted ATO penalties for non-compliance.
What is SuperStream?
SuperStream is a new process requiring employers to pay their employees super contributions using the government’s new data standards. In layman’s terms, it means all super contributions need to be made and recorded electronically – no more cheque writing.
Employers will have to comply with 2 things under SuperStream:
- The payment must be made electronically to the nominated superfund.
- Details of the payment transaction, such as employee name, Tax File Number and Super fund member number are also sent to the superfund.
How do I become SuperStream compliant?
Employers must use software that complies with SuperStream; or have a service provider who can meet SuperStream compliance on their behalf. Most current payroll programs have already integrated SuperStream solutions, including MYOB.
NOTE: If your current software does not support SuperStream you will need to explore other options such as; updating your payroll program or outsourcing your payroll function.
Do I need to collect additional information to make contributions using SuperStream?
Yes. To support contributions being made using SuperStream employers will need to collect the following additional information from each employee:
- Unique superannuation identifier (USI) for APRA-regulated funds
- ABN for SMSF funds
- Bank account details
- Electronic service address
What now?
Step 1: We suggest you contact your software provider to determine whether the payroll system you currently use will comply with SuperStream. If your system does not comply, ensure you make the necessary changes ASAP (deadline was 1st July 2015).
Step 2: Start collecting additional employee information (as outlined above) and enter it into your payroll program.
Step 3: Process superannuation payments and information through your payroll program.