From 1 July 2014 all super funds (including self-managed super funds) are required to receive employer super contributions using SuperStream Data and payment standards.
If you have 20 or more employees, you must be compliant by 30 June 2015. Employers with 19 or fewer employees should be getting ready as they are due to start sending SuperStream contributions from 1 July 2015.
To comply with SuperStream employers must pay all super contributions electronically to the bank account of your employees’ nominated fund (no cheques).
Secondly, when you pay super contributions, you also need to send some important information electronically that ensures your employee’s savings are tracked and updated properly. Amongst other things, this includes the tax file numbers (TFN) of your employees and a unique number that identifies the exact fund they are a member of (this is called a unique superannuation identifier (USI)). Your nominated superfund will be able to provide you with your Unique Superannuation Identifier Number.
Under SuperStream employers have different options for meeting SuperStream.
1. Employers can use a software solution that conforms to SuperStream, for instance Xero
2. Employers can partner with a service provider that can meet the SuperStream on your behalf.
As a result of these options you can:
· Upgrade your payroll software
· Use an online facility provided by your default fund
· Use an outsourced payroll or other service providers
· Use a commercial clearing house
· For employers with 19 or fewer employees they can elect to use the free Small Business Clearing house offered by the ATO.
Use of a clearing house is not compulsory however electing to use a clearing house will enable you to pay super contributions in one transaction to one location. Some default funds offer free clearing house services to default employers, check with the funds you pay to see what options they have available.
If you decide to use a clearing house, you will need to register and submit your employee’s details on the payroll clearing house website. Once registered every quarter you login and upload your employee’s information and make the payment to the clearing house either via Eft or a direct debit in one transaction. The Payroll clearing house will then distribute the money based on the information submitted about each employee.
Paying contributions to a SMSF?
Employers need to pay contributions to a SMSF electronically. Employers need the SMEF’s bank ABN, bank account and electronic service address. Employees and/or the SMSF Trustee should provide this information (is will ensure that employers can make electronic payments direct to the SMSF’s bank account). Employers need to plan for when they will make their first SuperStream contributions and obtain this information at least 30 days before this date.
Class super has developed a free SuperStream Service for all Self-managed superannuation funds through SMSF Dataflow to act as your SuperStream provider. We have registered your superannuation fund with SMSF Data flow and filled out all necessary information to ensure you fund is compliant by 30 June 2015. You will receive an email with your Electronic Service address from us soon.