SuperStream - Webinar. Information session for employers

Transcription

1 SuperStream - Webinar Information session for employers Presented by SuperStream Project Team Australian Taxation Office 9 September 2015

2 How to participate today UNCLASSIFIED SuperStream Information for employers 2

3 What do you need to know about SuperStream? >SuperStream makes super contributions super simple for employers >SuperStream is about paying super and sending information about the payment electronically >All employers need to implement SuperStream in their businesses >Employers need to get ready now (it s compulsory). UNCLASSIFIED SuperStream Information for employers 3

4 What is it all about? >Employers need to pay super electronically and provide more complete information about their employees as part of the same transaction. >If you are already paying super electronically, you re probably almost SuperStream ready. >If you don t pay your super electronically, then SuperStream means the end to paper processes, like cheques, paper and s. UNCLASSIFIED SuperStream Information for employers 4

5 Paying super: what s your experience? >A regular routine (generally monthly or quarterly) > Driven by a deadline > You have to deal with multiple funds > Every fund has different payment and reporting methods > It s time consuming > You d rather be doing other things Small cleaning business - 15 employees Every month the deadline for paying super for my employees rolls around again. It was a time-consuming routine for me to pay 12 different funds in 12 different ways for my 15 employees. SuperStream has made paying and reporting super contributions so easy - it's all electronic and there are no more cheques! I found that my super fund was very helpful and just a phone call away. UNCLASSIFIED SuperStream Information for employers 5

6 Some key figures $1 billion is wasted in administrative costs On average small employers pay to 3 super funds 250,000 employers already are benefiting from SuperStream around Australia UNCLASSIFIED SuperStream Information for employers 6

7 Getting excited about SuperStream > Paying super will be easier > Less variation (a single channel, not multiple funds) > Reduced processing costs (save time and money) > Less errors and less time fixing errors (you will have better information in your payroll) > Your employees super will be processed faster > Peace of mind in relation to super payments Small florist business, Tasmania - 4 employees SuperStream gives me peace of mind. As an employer, I only pay super to four super funds. Paying super doesn't take too long, but every fund has different requirements and log ins. I manage the paperwork for the business at night and I support anything that reduces unnecessary work for me. With SuperStream, I now make one transaction every month and know I'm covered and my employees get their money quicker. UNCLASSIFIED SuperStream Information for employers 7

8 What should you do next? >There are lots of ways you can get ready for SuperStream. >Your next steps depends on how you pay your super now and in the future. >You can do it yourself or you can ask someone to help you, like an accounting professional, your payroll provider or a super fund. >Start by getting some advice from the person that currently manages your super. UNCLASSIFIED SuperStream Information for employers 8

9 A simple checklist 1. Set a SuperStream start date 2. Ensure your superannuation process is SuperStream ready 3. Collect new information and update payroll records 4. Make your first SuperStream contribution Have a look at the ATO s employer checklist on our website ( UNCLASSIFIED SuperStream Information for employers 9

10 Set a SuperStream start date >You should make contributions for your employees using SuperStream as soon as possible. > This means you will get the benefits earlier and avoid any issues UNCLASSIFIED SuperStream Information for employers 10

11 Ensuring superannuation processes are SuperStream ready > A super fund > Payroll software > A clearing house apart from the commercial offerings, consider the ATO s Small Business Super Clearing House (a free online service) > An accounting professional or bookkeeper Tip: Check that your solution is SuperStream ready. Give your provider a call or look at their website. They can step you through the process. UNCLASSIFIED SuperStream Information for employers 11

12 Collecting SuperStream information > You need to send the super payment and information about that payment electronically. >This information tells the super fund who the contribution is for and which account it needs to go to Tip: Plan ahead. Give your employees enough time to give you the info. They can refer to their latest super fund statement or their fund s website. Tip: Put the information in your payroll records UNCLASSIFIED SuperStream Information for employers 12

13 Some key information you need For each employee who contributes to a super fund New information required Fund s ABN Unique superannuation identifier (USI) Bank account details* Electronic service address* Employee tax file number (TFN) Fund type All funds APRA regulated funds only SMSFs SMSFs All funds You will also need the following employee details: Date of birth, address and phone number Tip: See the employer checklist online for more information on data requirements UNCLASSIFIED SuperStream Information for employers 13

14 More information on paying SMSFs >Employers need to pay super to SMSFs using the standardised SuperStream way too >Every SMSF that receives employer contributions needs an electronic service address (ESA) >Employees must provide the ESA to employer (part of Choice form process) >There is an exemption for related parties. Tip: If employers do not have all the details to send contributions electronically to SMSFs, they can request that their employees complete the Super Choice form within a reasonable period of time. If the information is still not provided, the employer may direct the contributions to their default fund. Tip: It s mandatory to use a registered ESA. UNCLASSIFIED SuperStream Information for employers 14

15 Make contributions using SuperStream > Information about the contributions will be sent electronically, in a standardised way to super funds. > If an employer is not ready for SuperStream by the due dates, they should continue to make contributions in the current way for a limited time >If an employer experiences difficulties when making a SuperStream contribution that means they are going to miss the super guarantee due date, they should also make contributions the current way. > Once they have met their super guarantee obligations they should continue with their SuperStream preparations. UNCLASSIFIED SuperStream Information for employers 15

16 Our compliance approach >Our first priority is to help you understand and comply with your obligations under SuperStream. >We have asked super funds to support employers as they work to comply with SuperStream. >we have a range of compliance enforcement options we can apply if the behaviour of the employer does not change: issuing a direction notice or applying administrative penalties > Refer to our compliance statement for more information. UNCLASSIFIED SuperStream Information for employers 16

17 More information > ATO Website: FAQs Employer checklist Certified Product Register (to see who is SuperStream ready) Register of Messaging Providers (to get an ESA for a SMSF) > superstreamstandards@ato.gov.au > Your solution provider s website or you can try the Small Business Super Clearing House (Note change in eligibility criteria: < $2m aggregated turnover or <20 employees). UNCLASSIFIED SuperStream Information for employers 17