With the mandatory deadline approaching closer every day, is it time that your business became SuperStream ready?
What is SuperStream?
SuperStream is the government's attempt to streamline superannuation payments for businesses. Rather than having to send payments to various different kinds of funds that can be in all sorts of different formats, SuperStream reduces the workload by creating a single electronic payment system in a single standardised format.
Smaller businesses have until June 2016 to implement the new system, though the Australian Taxation Office (ATO) has been pushing for people to adopt it well before then.
Why adopt it early?
Other than simply being prepared for the switchover without a mad rush at the end of May this year, there are several touted benefits to early adoptions.
The ATO has reported that some small businesses can reduce their admin by 70 per cent simply by using SuperStream, with small businesses saving up to $50 million collectively in work hours every year.
You also have the benefit of familiarising yourself with the system before everyone else, giving you the jump on the competition for streamlining your business accounting.
How do I get SuperStream ready?
There are several steps to prepare your business for SuperStream, though they primarily fall into two major stages:
Firstly, because you have to send the data electronically, you have to have payroll solutions and systems in place for your small business. Even if you already have these implemented, you need to check that they are SuperStream ready, and whether you need any updates.
Secondly, you need to collect employee data, including their unique superannuation identifier, their fund Australian business number and their own personal tax file number.
Throughout the entire process, make sure you keep your small-business accountant up to date with what you're doing. They will be able to assist you in getting SuperStream ready, while we at WMC Accounting can also make suggestions to help you streamline the process even further for your unique business needs.