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It’s a month until the end of the 2015-16 financial year and new research released today shows that a concerning number of Australian small businesses aren’t in compliance with Australian Tax Office (ATO) SuperStream regulations.
Data from MYOB’s latest Business Monitor Survey shows that one third of SMEs are still running a risk of potentially not complying with the new SuperStream requirements.
SuperStream is the standardisation of how employers make super contributions on behalf of their employees. It involves employers sending all super payments and employee information electronically in a standard format and using it is mandatory.
“Completing SuperStream set up and using it prior to the 30 June deadline is very doable. If you have questions, today is the day to seek advice and put your plan in place,” said James O’Halloran, deputy commissioner at the ATO.
While all employers are required by law to comply with this legislation by the 1 July 2016, MYOB’s latest results found that one quarter of businesses surveyed were unaware of the deadline, 17 percent of operators had not yet complied and 13 percent were unsure.
This figure was the highest amongst construction and trade businesses with an overwhelming 31 percent of SMEs in this industry not having complied with the ATO’s SuperStream requirements.
When asked why operators had not yet met the SuperStream obligations, more than a quarter of SMEs found the process confusing, and a further 23 percent felt they did not have enough information.
“SuperStream is the law for SMEs from 1 July, and it’s concerning to see so many at risk of non-compliance with the deadline just a few weeks away. Employers need to be taking action now to ensure they get their implementation right by 30 June,” said James Scollay, MYOB General Manager of SME Solutions.
“The great thing about SuperStream is that it really simplifies workflows so, when customers move to the latest version of any MYOB payroll product they will have the tools to be fully compliant and, in many cases, will also be able to spend less time dealing with employee data issues and fund queries and reduce the cost of processing contributions and payments.”
“Businesses that are looking for more information on this should talk to their Accountant or Bookkeeper as they will be able to inform operators what’s required to be compliant and help them make any necessary changes to their systems and processes” urged Scollay.
To provide customers with an efficient SuperStream solution, Reckon has joined forces with the National Australia Bank (NAB) to provide its accounting software customers with NAB SuperPay.
NAB SuperPay has been established as a SuperStream gateway provider for Reckon customers to ensure businesses are compliant with the Australian Government’s SuperStream legislation which requires all superannuation contributions to be made by an electronic payment system.
“Reckon has made it easier than ever to help businesses become SuperStream compliant. Our approach to the SuperStream legislation was to provide customers with an integrated and streamlined approach that had minimal impact to their day to day business activities,” said Reckon Limited CEO Clive Rabie.
“Our partnership with NAB and the NAB SuperPay solution allows business to enjoy the efficiencies and time savings of paying superannuation contributions electronically as well as piece of mind that they are meeting Australian Tax Office requirements and that their employee’s superannuation is being paid.”
Businesses that do not comply with their SuperStream obligations could face ATO penalties.
Image credit: Shutterstock