SuperStream is a government initiative being implemented by the ATO, which will effect all business owners currently making super contributions on behalf of their employees. By June 2016, all business owners must be compliant or they will be at risk of penalties.
The ATO is rolling out this new initiative to ensure that all superannuation data is transmitted consistently across all parties i.e. between employees, super funds, service providers and the ATO. Essentially, the ATO is looking to improve the efficiency of the super system.
WHO MUST COMPLY? All businesses owners currently making super contributions on behalf of their employees will have to comply by submitting data and payments electronically in accordance with the SuperStream standard.
Self-managed super funds (SMSFs) must be able to receive employer contributions and the associated data electronically using the SuperStream standard (unless the only employer contributions are from a related-party employer).
WHAT ARE THE BENEFITS? With SuperStream, employers will have a simpler and more consistent way of making contributions to their employees, including: • you can use a single channel for making contributions to multiple funds • you’ll spend less time dealing with employee data issues and fund queries • the information and money you send can flow more quickly to the super funds
WHAT HAPPENS IF YOU DON’T COMPLY? The ATO has a range of compliance enforcement options for employers that do not comply with the SuperStream obligations including issuing a direction notice or applying administrative penalties.
HOW CAN I COMPLY? If you are a small employer with less than 19 employees you can comply by using the Small Business ATO Super Clearing House. Alternatively, you can speak with your bookkeeper or accountant and they will be able to help.
If you are currently making super contributions on behalf of your employees and would like to make a plan for how you can become compliant before June 2016, please get in touch with Innovate Bookkeeping. We have a range of services available at affordable prices, both once-off to get you up and running, and ongoing to help with the long term management of your payroll.
Source via Kristallis