SuperStream deadline looming for small businesses
ATO’s SuperStream standard is drastically reforming the way businesses make superannuation payments in Australia. With the deadline for meeting the standard close on the horizon for small businesses, it’s important that they understand how SuperStream will change their practices.
For businesses using payroll software it is particularly important to ensure your systems facilitate the legislation and that you will be compliant going forward.
Is your business prepared for the SuperStream deadline?
What do businesses need to know about SuperStream?
While larger companies made the transition to SuperStream prior to 31 October 2015, the deadline for small businesses is set at 30 June 2016. This means that adoption is a prominent concern for many smaller-scale companies, which have to ensure they are compliant with ATO’s legislation before time runs out. ATO National Program Manager Philip Hind said in a late 2015 press release that a large number of business have now transitioned and are giving positive feedback on the new process.
“Over 350,000 employers nationwide have made the switch to SuperStream to make their super contributions. We’re hearing about employers who have experienced an enormous reduction in the amount of time it takes to process super,” he said.
ATO anticipates a number of benefits for embracing the electronic payment method that SuperStream entails.
“Once fully implemented, SuperStream will provide employers with a consistent process for making super contributions. In many cases, this will enable them to submit a single contribution for their employees rather than have multiple interactions in different formats previously required by each fund,” said Mr Hind.
How can you ensure you are compliant?
It’s important that companies with less than 20 employees are taking steps to adopt the new standard in the near future. Consequently, there are a number of aspects that small business owners need to consider when making the transition. One of them is whether or not the payroll software they are using is compliant. Employers can consult the SuperStream Certified Product Register to find out whether their particular system meets the requirements of the legislation.
It’s essential for companies to use a cloud-based efficiency software provider like FastTrack that is SuperStream certified across its platforms, giving its users peace-of-mind.
“This is one of the many ways we ensure our clients are supported not only with a strong, quality product, but with a vendor who understands the pressures customers face and who are committed to supporting them with solutions that best help address and meet them,” said David Page, CEO of FastTrack.
Software is just one area in which small businesses can help achieve compliance, and thus they should consult the ATO for more information.