If you’re still paying your employees’ super with bank transfers (or worse still, cheques), then you need to change the way you do things—and fast.
Businesses making super contributions for 20 or more employees had to start making those payments online from 31 October 2015. And any business with fewer than 20 employees have to do the same from 30 June 2016.
That means no more paying by cheque (yes, some super funds insisted on being paid that way). A bank transfer probably won’t cut it either because you need to include other details such as the employee’s name, Tax File Number and Super Fund member number.
Help the government help you
So why is the government making everyone do this? Well, the government now realises people aren’t putting enough money away for their retirement.
At one point the magic superannuation figure to retire on comfortably was one million dollars. But according to a recent Deloitte report, that figure is now $1.58 million for men and $1.76 million for women. (Women live longer, so they have to save more.)
So as part of their plan to streamline superannuation payments, the government wants 20-40-year-old employees to “become more educated and proactive with their super investments” (to quote MYOB’s Richard Puffe).
The bottom line? If you’re not using an electronic accounting system, it’s time to make the switch.
Online accounting systems make it easy to comply
Naturally, the accounting systems that will handle the change best are those that already do everything online, such as Xero, MYOB and Quickbooks Online. All three are Superstream compliant, so you’ll be able to send your superannuation contributions (along with the other information the government needs) directly from whichever accounting package you use.
Get ready to ride the SuperStream
The deadline for all businesses to move to online superannuation contributions has been and gone. And if that means you have to switch to an electronic accounting system as well, then you really need to get moving.
But you don’t need to do it alone. We can help you get ready for SuperStream, and even move your local accounting information to one of the cloud-based accounting systems. You’ll not only streamline your employees’ superannuation contribution payments, but also reap the rewards of having accounting information you can access wherever and whenever you need it.