From late November 2022, we’re introducing a new safety measure for automatic superannuation (auto super) payments within Xero Payroll. This requirement will see new and existing customers connect an active bank feed to their registered auto super account.
Why? With this added layer of protection, we’re working to provide a safer way for you to process these payments to your employees. And given the importance of cybersecurity, it’s key that you implement this change in order to keep your Xero account secure.
Tell me, what is auto super?
If you’re unfamiliar with Xero’s auto super feature, that’s okay – we’ll give you a quick overview below.
Since 2011, it has been compulsory for all Australian employers to be SuperStream compliant. This means that superannuation payments and data are sent electronically to the ATO in a standardised and compliant format.
Xero provides a SuperStream compliant solution, known as auto super, to its payroll customers in Australia on Premium and Ultimate pricing plans. It enables superannuation payments from a registered bank account to an employee’s nominated fund through a third party clearing house – all in just a few clicks.
This feature removes the complexity and time burden of manually processing and paying super, and helps employers easily stay on top of their super guarantee (SG) obligations.
So, what’s changing?
Over the coming weeks, the registration process for auto super will include an additional requirement for both new and existing customers. Here’s what’s changing:
- For Xero customers signing up for auto super for the first time, it will become a mandatory requirement to establish a bank feed (from the bank account you’ll use to direct debit auto super payments from) in order to register and process payments.
- For Xero customers currently using auto super, you’ll need to ensure an active bank feed is connected to the bank account you’re currently using to process auto super payments upon re-registering or updating your registration details. Learn more about this in Xero Central.
I’m currently using auto super – do I need to make these updates immediately?
When this new safety requirement is rolled out later in November, existing customers using auto super won’t have to make any immediate changes. However, if you are required to re-register or update your registration details, you will need to connect an active bank feed to continue processing superannuation payments.
It’s important to note that setting up a bank feed can take up to 10 business days, depending on your banking provider. So we highly recommend getting ahead by adding a bank feed to your current bank account that’s registered for auto super (if this doesn’t already exist). The sooner you do this, the more secure your account will be.
Where can I go to learn more?
For more information about the registration process for auto super, visit Xero Central. And for additional support, be sure to speak to your advisor.