Business owners, employees and self-managed superannuation fund (SMSF) trustees: Super Stream is coming and is changing the way super is paid.
SuperStream, the most highlighted topic of the time is only two quarters away from being mandatory for all employers. Now is the best time to familiarize ourselves and adopt SuperStream before the deadline. SuperStream is a safe and secure way to provide employee data electronically to the fund while payment is sent through banking system.
According to a survey on employers who have already adopted SuperStream, it was known that SuperStream on an average has reduced the time spent by employers on super by 70% and also so far, collectively saving up to $50 million per year
According to Mr. Philip Hind, ATO’s National Program Manager, Data Standards & E-commerce (SuperStream), now is the ideal time for every employer to collect the necessary information required to use SuperStream and enter it into the system before the next quarterly due date of 28th January. This includes employee’s TFNs and their funds’ Unique Super Identifiers (USIs) which can be obtained through their super statement, via contact with the fund and also via the Super Fund Lookup website. For SMSF trustees, employers will also need to collect ABN, bank account details and electronic service addresses.
SuperStream allows funds to be more accurate and allows members to access complete information about their superannuation which means that users can track their super easily, which will inevitably result in less lost super, less admin fee from multiple super accounts which will result in higher accumulated super.
To begin implementing SuperStream, follow the below 3 easy steps:
Step 1: Choose your option on how you would like to pay super electronically
• Through your online Super fund service
• A Super Clearing house will be able to pay all your employee’s
• Through your payroll system if it meets the SuperStream standard
• Messaging portal
Step 2: Collect information and update your records
You will need to collect new information from your employees such as their TFN, fund ABN and fund Unique Superannuation Identifier (USI). For SMSF trustees, you will also need to collect their ABN, bank account details and electronic service addresses. Once you have collected these information, enter it into your system and you’re ready to use SuperStream.
Step 3: Use SuperStream
Employers should be SuperStream ready by the 30th of June 2016 for those who have 19 or fewer employees. However it is recommended that you begin using SuperStream no later than March 2016 to ensure the system is running smoothly before the deadline.
The ATO step-by-step checklist on how to prepare and set up for SuperStream can be found at https://www.ato.gov.au/Super/Superstream/Employers/Employer-checklist–a-step-by-step-guide/. You can also contact us and we will be able to guide you on how you can set up for SuperStream today.
(This article is accompanied by a disclaimer, to avail a full copy of this, please contact A One Accountants by calling 03-86091889 and emailing us at firstname.lastname@example.org)