From 1 July 2014, if you have 20 or more employees, you can use the new Superannuation Data and Payment Standard when making super contributions.
The standard offers a simpler way of making super contributions and, for many employers, will provide a single channel for making contributions to multiple super funds.
Under the standard, employers will need to:
- send all super data electronically (such as the employee's details and the amount of super being paid)
- make contribution payments electronically
- link data and payments with a unique payment reference number
- send data and payments on the same day
- upgrading your software so that it complies with the standard
- engaging a service provider who can meet the standard on your behalf
- getting advice from your super fund on how your business can meet the standard.
Find out more about the Data and Payment Standard on the ATO website.
From 1 July 2015 all employers need to use this system
IT IS A BETTER PLACE TO BE in our view
We are a strong believer and proponent in business efficiency. Accordingly giving business the ability to comply with all their superannuation obligations quickly and easily and make payments from within their normal business software is a great step forward.
What does it mean?
1. From within your payroll system you state which superfund needs to be paid for which employees.
2. Your system keeps track of the amounts
3. When payments are due the software should create the payment instruction to the superannuation clearing house/s and send the money to that clearing house
4. The superannuation clearing house takes the bulk instruction from you, separates the information (data) and the payment into the respective funds and sends it on i.e., push button SGC obligations met!
A. The Medicare superannuation clearing house has been available for small business (less than 20 employees) for some time (See information and instructions here)
This is now administered by the Department of Human Services/Medicare. This was a great first step towards this system but it is not an automatic process and in fact you need to duplicate your data by having all your relevant employee information in the Medicare system. This system continues for the time being.
B. MYOB have had the M-Powered Superannuation in place for many years. From within their desktop product (ie not ARLive yet – see below), you establish the superannuation information in the payroll area and at the push of a couple of buttons the superannuation is paid and information sent through their M-Powered Superannuation Clearing House.
MYOB have recently advised “If you are using a current MYOB product to calculate and complete your payroll, we will release a SuperStream solution well before July 2014.” See the full article here.
This refers to all their product range: AccountRight Live, AccountRight V 19, LiveAccounts, Powerpay, AccountEdge
C. Xero have “auto super” which does the same process and uses clearing house “Clicksuper”
Xero have recently advised “With the new Business Edition subscription bundles that Xero announced last week, we used this as an opportunity to embed auto-super payments across all Premium plans. This feature was previously only available in our large subscription.”