From 1 July 2014, businesses with 20 or more employees will be able to use the new Superannuation Data & Payment Standard when making super contributions.
The purpose of the standard is to streamline the super payment process for employers. It essentially provides a consistent method for preparing contributions, and a single channel for interacting with multiple funds.
The Australian Taxation Office (ATO) says employers will be able to:
- send all super data electronically (such as the employee’s details and the amount of super being paid)
- make contribution payments electronically
- link data and payments with a unique payment reference number
- send data and payments on the same day.
The ATO said employers must be mindful of upgrading their software to comply with the standard, and to seek advice from their super fund.
To meet the standard, employers have the option of either using software that conforms to the standard, or a service provider who can meet the standard on behalf of the employer.
In the lead up to rolling out the standard, the ATO is sending out information packs to all employers with 20 or more employees.
Find out more info here.
As it stands, from 1 July 2015, small employers (with 19 or fewer employees) will also start making contributions using the standard. Small employers with under 19 employers also have the option of using the ATO’s free super clearing house.