ATO urges small employers to prepare for SuperStream
July 1 heralds the start of SuperStream for small employers (with 19 or fewer employees).
Medium to large employers (with 20 or more employees) should now be SuperStream ready but have until October 31, 2015 to finalise their implementation.
The ATO is advising employers that have not yet made the change to speak with their service provider, accounting professional or super fund to help find a solution that best suits their business needs.
Under SuperStream, employers are required to make super contributions electronically in a standard format. A significant benefit is the reduced time and cost it takes for employers to meet their super obligations.
Thousands of small employers have already made the change to SuperStream. Many employers now using SuperStream have reported they are experiencing significant benefits.
Accountant Peter Shonhan of Kennas Chartered Accountants said the move to SuperStream has cut down time spent on paying super considerably.
“We upgraded our payroll software and have been recommending our employer clients to do the same. What previously took around a day per month now takes less than an hour. The time savings are pretty high and allows us to focus on other parts of the business,” said Mr Shonhan.
“SuperStream changes are much like the move to internet banking. There are a few steps to set things up, but, after that, making super contributions is so much easier and faster than before. We couldn’t imagine going back to our old methods,” he said.
Philip Hind, ATO National Program Manager, Data Standards and E-Commerce (SuperStream), said SuperStream is delivering real benefits for business.
“SuperStream is making super contributions super simple. For employers, it is cutting red tape by making all super payments electronic and introducing a standard way to pay contributions.”
“Previously, it has been time consuming for employers who had to make multiple super contributions to numerous funds with many also using cheques to make payments.
“For many employers paying super took hours. Under SuperStream, employers need now make just one electronic transaction covering all employees – and this can considerably cut the time it takes to make super contributions.”
“There are many options available to adopt SuperStream. Employers should investigate their options and prepare now. The ATO’s SuperStream employer checklist is a great place to start,” Mr Hind said.
Small employers also have the option of using the ATO’s free Small Business Superannuation Clearing House to meet their SuperStream obligations.
For more information, go to the ATO’s employer checklist at www.ato.gov.au/SuperStreamChecklist
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