SUPERSTREAM DEADLINE FOR SMALL BUSINESSES CLOSING: 28TH OCTOBER 2017.
The SuperStream was initially introduced to provide funds with a more accurate and complete information about a member’s superannuation which allowed members to track their super easily to reduce the occurrence of lost super, less admin fee from multiple super accounts which inevitably results in higher accumulation within the fund.
Since the introduction of SuperStream in 2016, most small businesses have already switched over and are compliant to the new system. However there are still the remaining minority who have not yet switched over to the new system.
If you are a small business with 19 or fewer employees, you must switch over before the deadline of the 28th October 2017 in order to avoid being hit with penalties. ATO has provided an extension of 4 months from the initial deadline of 30 June 2017. However, there will not be any more extensions.
Setting up SuperStream might take some time however it is a one off task and in the future it will save time for businesses that pay super to many funds in a structured and streamlined manner.
The process of paying the superannuation to employees is fairly straightforward. There are a few methods suiting your business that you can choose to pay employees super:
- Using super fund’s portal – Most industry super funds have online super portals that allow employers to pay super to their employees. If you are using this method then you are SuperStream ready and compliant.
- Using payroll software – The payroll software which you use must be SuperStream compliant too. This means that the functions of your payroll software must allow you to pay super in the correct way. You can also check with the ATO if your payroll software is compliant according to the ATO’s standards by visiting SuperStream Product Register on ATO’s website.
- Using a clearing house – You can either use a clearing house or the ATO’s tool for Small Business Superannuation Clearing House. This is another simpler way to pay Super.
- EFT or BPAY – This process is not fully adept with the process of paying superannuation under the new guidelines of SuperStream. There must be a specific arrangement from each of the super funds when super is paid and is quite complex to use. There is also a requirement to send information electronically or through a messaging portal through which the employee can access the information.
- Accountant’s services – The accountant has to meet the entire SuperStream obligation on behalf of your business. The accountant would use one of the above mentioned methods to process Superannuation for your business.
- Cheque – You are not compliant if you have been paying super using cheque. You should consult us in regards to how to change to SuperStream.
It is understandable that this process can be complex at start. However, to assist small businesses, we as your accountants can organise this process for you. The ATO too holds webinars to help small businesses step by step to become familiar to this process. If you are unsure and would like additional guidance, feel free to give us a call on 03 8609 1889 or email us on email@example.com and one of our friendly consultants shall be more than happy to assist you.