The Australian Taxation Office has recently issued a reminder to Small Businesses (< 20 employees) to ensure that they meet the SuperStream standard by 30 June 2016.
As you may recall from our previous blog, SuperStream is a standard for how employers pay employee's superannuation contributions and communicate the details of those contributions to the recipient superannuation funds.
In essence, it is a uniform system of electronically transmitting payment of contributions and accompanying information.
What do employers need to do?
Employers can meet their SuperStream requirements by paying contributions electronically and by either:
- using SuperStream compliant payroll software; or
- using a service provider who can look after SuperStream compliance on their behalf; or
- using a clearing house like the Small Business Superannuation Clearing House.
Employers using accounting software packages should ensure that the version they are running is compliant. Employers can check compliance either direct with their software provider or by checking the ATO Product Register.
What do Self Managed Superannuation Funds (SMSF) need to do?
SMSF need to ensure that they are equipped to receive contributions and the accompanying data. They do this by maintaining an Electronic Service Address (ESA).
Leading SMSF accounting packages such as Class Super and Simple Fund offer ESA solutions. SMSF wishing to access these solutions should contact their accountants to make arrangements.
Alternatively, there are other options available to SMSF such as the low cost Australia Post ESA solution.