Many employers spend hours every month or quarter distributing super to the various funds used by their employees.
In the future the ATO will be introducing compulsory electronic payment of super contributions which will make the whole process easier for all.
Changes for business owners
From 1st July 2014, employers with more than 20 employees are required to provide timely information about superannuation contributions they have made.
SuperStream or Data and Payment Standards, is a new process requiring employers to pay their employees superannuation contributions using the government’s new data standards. In layman’s terms, it means all superannuation contributions need to be made and recorded electronically – no more cheque writing.
Employers will have to comply with 2 things under SuperStream:
1. The payment must be made electronically to the nominated superfund.
2. Details of the payment transaction, such as employee name, Tax File Number and Super fund member number are also sent to the superfund.
The government hopes that SuperStream will help:
- Speed up the time it takes for super contributions to be credited against the members super account (from weeks to just days)
- Provide better information about the amount and timing of superannuation payments to employees
- Provide notification from funds to members on whether contributions have or have not been received.
- Better data matching / consolidation by super funds in regards to money it has and whom it belongs to, for example, reduction in funds not credited against a super member.
SunSuper have a clearing house facility through which employers can distribute their super contributions electronically. A file upload is available for MYOB EXO Payroll. Contact us for information on the file upload for SunSuper.