SuperStream – what you need to know!
What is SuperStream?
SuperStream is a government reform to improve the superannuation system handling of information and payments. This new data standard imposes changes to the way employers are making contribution payments for employees, the data needs to be remitted in a consistent and simplified format. One of the many implications for employers, is how this can be done with lacking payroll system capabilities.
When does the new data standards apply?
Employers with 20 or more employees are required to take action to start implementing by 1 July 2014, whereas employers with 19 or fewer employees have until 1 July 2015 to take action. Employers will have 12 months to implement the changes required to remit and make payments electronically in a standardised format.
Employers do have a number of available options to meet the standard going forward, which could include:
- Review and upgrade the payroll system
- Use of a superannuation clearing house
- Use of an external clearing facility provider
Failure to adhere to the new data standards?
If the employer does not adhere to the new data standards they will likely face compliance actions and penalties from the ATO. This is more likely to occur when the employer has failed to take the necessary steps to implement the new data standards.
If you require assistance, JSA Corporate Super can assist you in deciding which option may be best for your business.