SuperStream detailed guide for small business owners
What is SuperStream?
SuperStream is a standard data format and can be transmitted consistently across super system between employers, funds, service providers and ATO.
When are business required to be ready for SuperStream compliance?
As per ATO, all businesses (large, medium or small) must be ready for SuperStream compliance by 30 June 2016 (As of June 2016, ATO provides compliance flexibility to small business until 28 October 2016.). Even if small employers with 19 or fewer employees must meet the SuperStream standard by 30 June 2016, which means that any business with employee must be SuperStream compliant by 30 June 2016.
Why are ATO pushing for SuperStream? And what are the benefits?
Main benefits:
What should employer do?
Step 1: choose a system
Small business needs to choose a system to process superstream ready data, the available system are:
Step 2: Collect information and update records
Regulated super fund: unique super identifier (USI), which replaces previous SPIN, fund ABN.
Self-managed super fund (SMSF): ABN, electronic service address (ESA) and fund bank account.
Employee information: other full name, address, TFN etc, extra employee details become mandatory, including: contact number, email and gender.
Employer may give employee super choice form again to collect related information. (If the download link is missing, please go to ATO website for details.)
Step 3: use SuperStream by 30 June 2016.
Is Xero compliant with SuperStream?
Yes, Xero is compliant with SuperStream requirements and Xero is of Gold level certifications and it is SuperStream ready.
Super payment made easier by auto super in Xero:
After register with auto super, the super payment is quite simple, it just takes a few clicks. Business owner can save lots of time on super payment.
What if business still pays super manually?
If business is still make super payment manually, then small business with 19 or less employees can register with ATO’s super clearing house.
Questions:
Can I pay super by cheque under SuperStream?
NO, all payments must be made by electronic transfer or Bpay.
Super contributions are exempt from SuperStream?
You don’t need to use SuperStream for:
Who is responsible for being SuperStream compliant?
Company director/business owner is responsible for being SuperStream compliant.
Will payment be rejected by super fund if not sending SuperStream compliant data together?
Most super fund will still accept payment, but the employer is not SuperStream compliant. Accept or not depends on individual super's policy.
When is payment required to be made?
By law, payment is required to be made the same day when super payment message is submitted.
Is there penalty for not being SuperStream compliant?
No. At this stage (As of July 2016), there is NO penalty for not being compliant yet. Please refer to ATO SuperStream for further update.
Do I have to pay personal contributions under SuperStream?
No. Personal after tax contribution is not required to be paid under SuperStream. SuperStream only covers pretax super contribution like super guarantee or salary sacrifice super contribution.
Does sole trader have to pay super under SuperStream?
No. Sole trader is not an employee by definition, unless you are drawing wages under sole trader.
If there are further inquiries about SuperStream, please feel free to contact us.
SuperStream is a standard data format and can be transmitted consistently across super system between employers, funds, service providers and ATO.
When are business required to be ready for SuperStream compliance?
As per ATO, all businesses (large, medium or small) must be ready for SuperStream compliance by 30 June 2016 (As of June 2016, ATO provides compliance flexibility to small business until 28 October 2016.). Even if small employers with 19 or fewer employees must meet the SuperStream standard by 30 June 2016, which means that any business with employee must be SuperStream compliant by 30 June 2016.
Why are ATO pushing for SuperStream? And what are the benefits?
Main benefits:
- Employers: single transaction for all employee’s super contribution, no matter how many super funds are to be allocated.
- Faster and more efficient contributions and rollovers with fewer errors.
- Reduction in lost super accounts and unclaimed super fund contribution.
What should employer do?
Step 1: choose a system
Small business needs to choose a system to process superstream ready data, the available system are:
- SuperStream compliant payroll system (major payroll system is SuperStream compliant, like, Xero, MYOB and etc, please check ATO’s certification list.)
- Super fund’s online system (Large super have online payment services can be used.)
- Super clearing house (Small business with 19 or less employee or turnover less than $2 million can use ATO’s free Small Business Super Clearing House.)
- Messaging portal.
Step 2: Collect information and update records
Regulated super fund: unique super identifier (USI), which replaces previous SPIN, fund ABN.
Self-managed super fund (SMSF): ABN, electronic service address (ESA) and fund bank account.
Employee information: other full name, address, TFN etc, extra employee details become mandatory, including: contact number, email and gender.
Employer may give employee super choice form again to collect related information. (If the download link is missing, please go to ATO website for details.)
Step 3: use SuperStream by 30 June 2016.
Is Xero compliant with SuperStream?
Yes, Xero is compliant with SuperStream requirements and Xero is of Gold level certifications and it is SuperStream ready.
Super payment made easier by auto super in Xero:
After register with auto super, the super payment is quite simple, it just takes a few clicks. Business owner can save lots of time on super payment.
- Make sure all employee’s details are setup correctly, please refer to Xero help centre’s steps.
- Tick the super to be paid and submit.
- Authorised person to approve super payment.
- After approval, Xero’s auto super partner, currently Click Super will direct debit the total super payable amount submitted and distributed to each employee’s super fund.
What if business still pays super manually?
If business is still make super payment manually, then small business with 19 or less employees can register with ATO’s super clearing house.
Questions:
Can I pay super by cheque under SuperStream?
NO, all payments must be made by electronic transfer or Bpay.
Super contributions are exempt from SuperStream?
You don’t need to use SuperStream for:
- Super contribution to your own SMSF
- Personal contribution
Who is responsible for being SuperStream compliant?
Company director/business owner is responsible for being SuperStream compliant.
Will payment be rejected by super fund if not sending SuperStream compliant data together?
Most super fund will still accept payment, but the employer is not SuperStream compliant. Accept or not depends on individual super's policy.
When is payment required to be made?
By law, payment is required to be made the same day when super payment message is submitted.
Is there penalty for not being SuperStream compliant?
No. At this stage (As of July 2016), there is NO penalty for not being compliant yet. Please refer to ATO SuperStream for further update.
Do I have to pay personal contributions under SuperStream?
No. Personal after tax contribution is not required to be paid under SuperStream. SuperStream only covers pretax super contribution like super guarantee or salary sacrifice super contribution.
Does sole trader have to pay super under SuperStream?
No. Sole trader is not an employee by definition, unless you are drawing wages under sole trader.
If there are further inquiries about SuperStream, please feel free to contact us.
