In a last minute move by the ATO, small businesses have been granted a short reprieve from implementing SuperStream, with the compliance deadline extended from 30 June to 28th October 2016.
So what is SuperStream Compliance?
As an employer, you must pay superannuation contributions and send employee information electronically. This means you can no longer write a cheque to pay super, you must use EFT or BPAY and submit contribution information electronically.
How do I ensure I am SuperStream Compliant?
You can choose from one of the following options:
- If you are using payroll software it may be SuperStream ready. Payroll in Xero online accounting software is SuperStream Compliant.
- Large Superannuation Funds offer online payment services you may be able to use. You will need to check with the fund/s.
- A Super 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 your employees, and the clearing house does the rest. The ATO offers a free Small Business Super Clearing House if you have 19 or fewer employees and a turnover of less than $2million.
- A Messaging Portal can convert contribution data for your employees to a SuperStream compliant format and send it to the relevant funds for you, and you make one electronic payment.
If you are an employer and you have not yet selected one of the above options, we recommend you take action and seek advice from your accountant or tax advisor as soon as possible. Although, you now have a little more time to implement the process without the fear of compliance action from the ATO, we strongly recommend you allow yourself sufficient time to choose and implement a SuperStream compliant option.
By the way, 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 as these are exempt contributions.
If you need advice or assistance with SuperStream or any other payroll or business matter, please call our professional team at Sothertons Gladstone on 4972 1300. We would be happy to help.