Xero is a SuperStream Certified Product and we’re here to help you get SuperStream compliant.
The deadline for being SuperStream compliant varies depending on the number of employees you have. For Medium to Large employers (greater than 19 employees) the date has been extended until October 31, 2015. For small employers (19 or less employees) SuperStream starts from July 1, 2015 and businesses have until June 30, 2016 to comply.
Mindful of the ATO’s deadline for SuperStream compliance, the ability to get SuperStream ready has been available in Xero since November last year.
To meet the ATO’s SuperStream requirements, all regulated superannuation funds must have a new identifier – a unique superannuation identifier (USI) – that replaces the previous SPIN. Also, some Self Managed Super Funds (SMSF) are required to have an Electronic Service Address. It is important to have the correct superannuation fund set up to minimise processing failures using SuperStream.
There is no reliable direct relationship between a SPIN and a USI. This means all employees who nominate a Regulated Superannuation Fund will need to provide new superannuation fund details. We considered doing an automatic mapping of the SPIN’s to USIs, which is what some other software providers have been offering. However our investigation has revealed that it could not be reliably done across a catalogue of funds. As a result we have elected to eliminate this as an option in the interests of our customers. There were also other reasons such as an ever changing catalogue, absence of USIs for some funds to name a few. The ATO also advised us not to automate the mapping as it would not be reliable.
Using Auto Super in Xero
The Xero Auto Super feature on our Premium plans is the easiest way to prepare for SuperStream. To help with the transition, we have updated a Payroll report that helps you find the employees who we think might need updates. You can also export this list as an excel or PDF as with all our reports. Once you have the list and you think updates are needed, the easiest way to make sure you get the right information is for you to give your employees a new superannuation choice form that includes the USI. Your employees may need to contact their super fund to obtain the correct information. You have until 31st October 2015 to do this.
As soon as your employees provide you with their updated superannuation information, you’re ready to update your payroll. Here’s how you do that:
1 – Add the regulated super fund into Superannuation
2 – Update your employee’s super fund within their Employment tab.
There are a couple of ways to update the super fund and the choice you make will determine if you update only new super accruals or you want to change historical (unpaid) super accruals.
You can still continue to use this feature without making the above changes, but the payments will not be SuperStream compliant. We highly recommend making these changes before the 31st October deadline.
Managing superannuation outside of Xero
If you’re using a clearing house or a Funds’ Online Portal to meet your superannuation obligations, you should check with the clearinghouse or participating fund to see if any updates are required. If updates are required use the steps above.
To find out how Xero Auto Super saves you time and keeps you compliant check out the video on Superannuation and Automatic Superannuation Payments in Xero.