Super Stream has been introduced by the ATO to streamline the process of submitting and paying super contributions for your employees.
Employers with over 20 employees are already expected to be compliant (from 1st July 2014) and employers with 19 employees or under are expected to be compliant from 1st July 2015.
Are you eligible?
Small businesses with 19 or fewer employees are eligible to register for the SBSCH (Small Business Super Clearing House). An employee is defined as an individual who is employed on a full-time, part-time or casual basis.
Most super funds are offering a clearing house option, so if you have the majority of your employees with one fund, it may be preferable to set up your clearing house with them.
The ATO are also offering a Small Business Super Clearing House. It is easy to set up and use and ideal for employers whose employees have a variety of super funds.
How the clearing house operates:
The clearing house lets you pay your super contributions in one transition to a single location. It is designed to make the payment process easier and processing faster.
You simply register your employees super fund details and the clearing will distribute these to their various super funds.
- One secure electronic transaction.
- One contribution form only to be submitted.
- Option to nominate regular contribution amounts for employees.
- Employees with an SMSF are also eligible to be included in the contribution form.
- Annual Employee Statement reporting.
For further information on the ATO Small Business Super Clearing House, check out the ATO website under the Super tab. A comprehensive guide to setting up the ATO clearing house can be found at: https://www.ato.gov.au/Business/Super-for-employers/In-detail/Small-Business-Superannuation-Clearing-House/Clearing-house-reference-guide-(contextual-help)
ESA (Electronic Service Address) for SMSFs
The ATO has recently issued a letter to all SMSF trustees regarding the use of an ESA.
If you are an SMSF trustee, you will need to obtain an electronic service address from an SMSF messaging provider so that you can receive employer contribution messages sent using Super Stream.
In short this is an additional identifier for the Super Clearing House to use when distributing funds to SMSFs. You will need to provide your employer with an ESA so that they can contribute to your SMSF through any clearing house. You may already have been provided with an ESA from your SMSF banking institution, alternatively you may need to register for one.
The ATO provide a list of SMSF messaging providers – check out the following link: https://www.ato.gov.au/Super/SuperStream/In-detail/Contributions/SMSF-messaging-service-providers/#RegisterofSMSFmessagingproviders
Disclaimer: This article contains general information. Before you make any financial or investment decision you should seek professional advice to take into account your individual objectives, financial situation and individual needs.