It has been talked about a lot, but what is Super Stream, and how is it going to effect your business?
What is it?
SuperStream is a government reform to help improve the efficiency of the superannuation system. It means all superannuation payments will be made electronically. It is a mandatory super payment system for employees, Self Managed Super Funds and all other funds. Employers will be able to make all their contributions in a single transaction even when they are going to multiple superannuation funds. SuperrStream will allow contributions and rollovers to be processed faster with fewer errors. The days of writing a cheque and sending it off to a superfund with a letter are gone.
When do you have to use SuperStream?
If you are employing more than 20 employees, you should be already using SuperStream. If you have fewer than 20 employees, then you have until 30 June 2016 to be registered for SuperStream. From 1 July 2016, SuperStream is compulsory for all employees
What are your options to comply?
There are several options available to employers to ensure compliance with SuperStream. These include a SuperStream ready Payroll system, such as Xero, a super clearing house and online payment services that some larger Super Funds provide. These options can be confusing so it is best to seek advice on which option is the best fit for you and your business.
What should you do?
Our suggestion would be to start taking steps now to become SuperStream ready. Dont leave it to the last few days in June to register for SuperStream. There will be many businesses registering at the last minute which could make things difficult for you.
Despite it seeming like just one extra thing a business owner needs to do, SuperStream should ensure making super payments for your employees becomes even easier. Super payments made from the one spot, regardless of where they are paid to. Prior to SuperStream, it was possible for an employer employing say 15 people to make 15 superannuation contributions to 15 different super funds. SuperStream will simplify the whole process.
If you are still unsure of what to do, get in contact with our experts at Silvan Ridge. Call 03 5559 7111 to find out more information, or how Silvan Ridge can make your business SuperStream ready.