Are you SuperStream ready?
The ATO is offering advice for medium to large employers as they should have by now started implementing SuperStream. All employers with 20 or more employees need to prepare to ensure they’re ready to transition to SuperStream by no later than 30 June 2015. The next few months are critical for getting ready as the window for implementation is narrowing.
The ATO is helping prepare employers for changes in the way superannuation contributions are made between employers and super funds. SuperStream introduces a standardised electronic method for making data and payments to super funds as a way of providing cost and time savings benefits to employers while increasing the efficiency of the super system overall.
SuperStream is one of the most significant administrative reforms to the compulsory superannuation system since its inception 20 years ago. Already this new standard has been applied successfully to the rollover of member’s money from one fund to another which was the first step in the move towards a modern, e-commerce platform for the super system.
Small employers (19 or fewer employees) have until 1 July 2015 to start but the ATO will provide flexibility on start-up dates until 30 June 2016, provided employers are making genuine efforts to get ready.
To ensure early preparation, employers should talk to their payroll provider, clearing house or default fund to find a solution and implementation date that best suits them. The ATO will provide flexibility and support to employers making a genuine attempt to comply with their obligations under SuperStream. This will be based on your efforts to get ready, whether you have taken practical steps to consider the options for meeting your obligations and whether you have a realistic start date and plan for implementation.
Employers can prepare for SuperStream implementation by following these steps:
1. Assess your options
2. Set your target start date and plan
3. Update your payroll system (if needed)
4. Collect new information for your employees
5. Update your payroll records
6. Connect with your messaging service
7. Undertake a trial/test implementation
8. Send first contributions
9. Make refinements as needed
The ATO has put together a short video to help employers with the transition. Employers can also use the free Small Business Superannuation Clearing House to make their super payments and meet SuperStream requirements. For new information and advice, Philip Hind, ATO’s National Program Manager, Data Standards & E-Commerce, is available to discuss the benefits of SuperStream and key steps employers need to take to get ready or would happily provide a contributed article.
Employers have options for meeting SuperStream – either using software that conforms to SuperStream; or using a service provider who can meet SuperStream on your behalf. I can provide a case study on MYOB who have developed software that turns hours of processing into minutes. It is compliant to the SuperStream data standards to ensure users, including employer payroll providers, will be able to meet their obligations.
