Do I need to use SuperStream and what do I do?
In Australia SuperStream is used to pay super contributions for employees electronically but what does it mean to small business?
Here are 5 things you need to know about SuperStream for your small business.
1. If you employ people in Australia SuperStream is compulsory
Small businesses that have employees need to have a SuperStream compliant system in place to pay their employees’ super contributions electronically.
Using SuperStream employers can make all their contributions in a single transaction, even if they’re going to multiple super funds.
2. What options can I use for SuperStream?
There are a number of options available to businesses. These include:
- a compliant payroll system. You will need to check with your system provider that it meets the SuperStream Standard. If not, you may need to update your system. Also check whether the system covers data and payments and whether payments still need to made to each fund separately.
- Large super funds may have online payment services that are SuperStream compliant. Check with your fund about its online system.
- a super clearing house can pay super to your employees’ funds for you. If you have 19 or fewer employees, or a turnover of less than $2 million a year, you may be able use the ATO’s free Small Business Super Clearing House. Alternatively you can choose from several commercial options, but you will need to check what they do, their charges and ensure your responsibilities are met, such as making sure the employees’ super is paid correctly.
- a messaging portal can convert contribution data for your employees to a SuperStream compliant format and send it to the relevant funds for you. Though you still need to make one electronic payment. Speak to your messaging portal provider and financial institution.
3. Can someone do it on my behalf?
You can ask your accountant or bookkeeper to make the super contributions on your behalf. Like any service though, check what they do, their charges and ensure your responsibilities are met, such as making sure the employees’ super is paid correctly.
4. Ensure you have the information you need for SuperStream
For current employees you may need to collect updated information such as:
- employee tax file number (TFN)
- fund ABN
- fund unique superannuation identifier (USI).
For employees with a self-managed super fund (SMSF) you will need:
- employee TFN
- fund ABN
- fund bank account details
- fund electronic service address.
5. Get help if you need it
The ATO provides a number of resources to assist you with SuperStream. It’s critical you understand your responsibilities when it comes to SuperStream.
Don’t forget to check out our 5 Steps to Starting a Business.