The ATO SuperStream compliant deadline for small business (with 19 or fewer employees) is 30 June 2016. But don’t panic if you haven’t finished your compliance. We are here to help you every step of the way.
Just a quick refresher on SuperStream first:
SuperStream is a government reform requiring employers to make their superannuation contributions in a consistent, timely and efficient manner to a member’s account. You will now have to adapt your superannuation process and collect additional information particularly if you are making multiple superannuation contribution files and making cheque payments. Here is a brief summary of the new SuperStream requirements:
- All data must be sent electronically and in standard message format. This means no more hard copy reports can be sent and data cannot be faxed, emailed or posted
- All superannuation contribution payments must be made electronically as you will no longer be able to make cheque payments
- Data and money need to be linked with a unique payment reference number
- Data and payments must be sent on the same day
- Additional employee information and contribution information is required to meet the SuperStream data standard
While these new requirements may look scary and seem like a lot of change for your small business, compliance is not as difficult as it may seem. In the long run, there will be substantial benefits for your business; costs will decline and efficiencies will increase by improved data flows and the elimination of manual handling.
If you are struggling with how to start the process, here is some information to help you with your compliance journey:
Choose your packaged SuperStream solution
Sage WageEasy customers can integrate their payroll system with Sage Express Super , our superannuation clearing house, which will distribute payments to multiple employee superannuation funds on your behalf. The clearing house automates your processes to make it easy to achieve compliance, and well in time for the 30 June deadline.
Numbers, Codes and Other Acronyms
Throughout the compliance process you will see reference to lots of new acronyms, identifiers, numbers and codes. Here is a brief rundown to make sense of all of these for your small business:
USI: Unique Superannuation Identifier. This is a code given to all superannuation funds and can be found through the ATO SuperTick, Fund Validations Service (VFS), or by simply asking the individual fund.
Payment Reference Number (PRN): This is a unique reference that you will create and add to both the contribution data and banking file to link payment to contribution data for each superannuation payment. This number is generated by your business every time you generate superannuation data and payments.
ESA (Electronic Service Address): This is used in order for those people who have Self-Managed Funds to be able to receive data messages notifying them of SuperStream employer contributions. Your employees who have a Self-Managed Super Fund should provide you with the ESA.
Gather your employee’s relevant data
This task may seem daunting to larger businesses but for small businesses with under 20 employees, this should not be too time consuming. Plus many of you will already have this employee information on file.
Once you choose and start running your SuperStream product, you will need to collect and enter the following details for each of your employees: tax file number, super fund, Australian Business Number, Unique Super Identifier, Account Numbers and BSBs and electronic service addresses. Once you have collected all of your employee’s data and have updated your employee record, you are set to start making SuperStream payments.
We understand as a small business owner you are focused on achieving your business goals, once you are SuperStream compliant you will see the benefits. Electronic payments and single file transactions will save you time and effort, time that you can reinvest into your small business. And most importantly of all you will be fully SuperStream compliant with the Tax Office.
For more information on SuperStream please visit the ATO at www.ato.gov.au/superstream