SuperStream Compliance. What is it?
SuperStream Compliance definition, as outlined by the ATO:
SuperStream is the way businesses must pay employee superannuation guarantee contributions to super funds.
With SuperStream, money and data are sent electronically in a standard format. SuperStream transmits money and information consistently across the super system – between employers, funds, service providers and the ATO. The data is linked to the payment by a unique payment reference number
WHEN do I need to be SuperStream compliance ready?
Medium and Large business (20+ employees) are already using SuperStream. Small business had a deadline of 30 June 2016; however, ATO has granted an extension until October 2016. The ATO website clearly outlines, they will provide compliance flexibility until 28th October 2016.
WHY did the government introduce SuperStream?
Improving the efficiency of the superannuation system was the primary goal for the government.
Under the reform, employers must electronically submit super contributions on behalf of their employees. Employers will enjoy such benefits as being able to use a single channel when dealing with a number of superannuation funds and a reduced cost and time when it comes to processing contribution and payments.
HOW to be SuperStream Compliance ready
We at Bizprac software for builders are pleased to advise the ATO has passed us for SuperStream compliance. Bizprac 4Pay (Payroll) will be compliant, provided you are using Bizprac Premium/ Ultimate version 12.7 or later.
WHAT SuperStream platforms are available?
There are THREE SuperStream platforms available. Which platform you select will depend on your business and platform preference. The options are to:
- Continue to use your default super fund
Most super funds will still act as a clearinghouse for employers at no cost. However, these funds will probably require you to nominate them your default supplier. At the very least, you may need to register with them to receive their provided service. In addition, you may find this to be a manual process.
- Superannuation clearing house
A number of superannuation clearinghouses exist, some, with fees. The ATO however, has created a clearinghouse called The Small Business Superannuation Clearing House (SBSCH). This service is free to use and the service is available to small businesses who have;
Less than 19 employees OR
An aggregate turnover of less than $2 million
Generic accounting software, whilst offering SuperStream compliance, are not building industry specific. While your business may be SuperStream ready you can still be losing money through the limited ability of generic software to produce effective job costing. This is a bit like driving your car in overdrive, whilst looking in the rear vision mirror.
Development of Bizprac 4Pay caters for the specific needs of our building and construction industry. When using Bizprac 4Pay, SuperStream compliance is taken care of. Furthermore, you are also in full control of the financial stability of your company, in “real” time. Not at the end of the financial year after your accountant has looked at the figures.
Which platform option should I select?
Whilst free clearinghouse options exist, they often require manual input. In order to process through a free clearinghouse, you may need to extract the data from your accounting software and re-enter it into the clearinghouse online portal. Very time consuming, I am sure you will agree!! For this reason, using your accounting software as your SuperStream platform is the better option.
Bizprac has been set up to automate processes which save data entry time.
Never rest on your Laurels!!
Continuous development of Bizprac is “the norm” in our office. Bizprac 4Pay is ATO compliant and we will continue to work with the ATO to accommodate any further legislative change as it is required.
NB..Reference for the ATO information is their website.