The deadline for most employers to meet the Government’s SuperStream requirements are fast approaching.
From 1 July 2016, all employers are required to provide contributions and relevant data electronically to all superannuation funds, including SMSFs. This will provide a consistent and more efficient process for receiving contributions, improve data quality and simplify the employer’s obligations.
What Is SuperStream?
SuperStream is a government reform aimed at improving the efficiency of the superannuation system.
Under SuperStream, employers must make super contributions on behalf of their employees by submitting data and payments electronically in a consistent and simplified manner.
Before SuperStream, meeting your superannuation requirements was an onerous task with multiple funds to contribute to, each with their own specifications for acting the contributions data and payments.
What Date Do I Have To Be Compliant By?
To be compliant means that you have to have updated your payroll records, updated your payroll system, connected to your provider and undertaken a trial by your applicable date. It is imperative to start this process early and not to leave it to the last minute.
Large employers, being employers with 20 or more employees, will need to be SuperStream compliant before the 31 October 2015.
Small employers being employers with less than 20 employees, have until 30 June 2016 to be SuperStream compliant.
It is suggested that you start the process of becoming SuperStream compliant 120 days before your deadline to ensure all compliance measures are met.
What You Need To Do
Employers have options for meeting SuperStream – either using a:
- software solution that conforms to SuperStream and
- service provider who can arrange SuperStream compliance on your behalf.
Your options may include:
- upgrading your payroll software,
- using an outsourced payroll or other service provider,
- using a commercial clearing house or, for employers with 19 or fewer employers, using the free Small Business Superannuation Clearing House and
- your default fund. They may also have an electronic channel they manage or can make transitional arrangements for you.
You will need to collect and store additional information about funds in order to send them contributions in accordance with the SuperStream standard.
This includes the:
- Unique superannuation identifier (USI) for APRA-regulated funds,
- ABN for self-managed super funds,
- bank account details and
- electronic service address.
Talk to Accession3 about the best option for your business and how we can help you implement SuperStream into your business as soon as possible.