Are you a small business owner looking for a more seamless way of paying your employee superannuation contributions? The Australian Taxation Office (ATO) Small Business Superannuation Clearing House could be the answer to removing red tape and reducing your compliance costs.
What Are Your Super Responsibilities?
If you’re running a small business, all your employees – whether they are full-time, part-time or casual workers – are covered by the superannuation guarantee legislation.
That means employers must:
- Pay all eligible employees’ super by quarterly cut-off dates
- Contribute a least 9.5% of the employees’ earning base
- Offer a choice of super fund and provide a standard choice form
- Pay super to eligible contractors
- Keep records of super payments
Streamlining Super Payments
If you are an SMB with 19 employees or less and have an annual aggregated turnover of $2 million or under, the good news is you are entitled to use the ATO’s Small Business Superannuation Clearing House.
This online service is free and is designed to help startup, micro and small business owners meet their superannuation guarantee obligations.
The Clearing House makes it simple by allowing employers to pay super contributions in one online transaction, and also gives SMB owners 21 days leeway to pass on details about an employee’s choice of fund.
How Does it Work?
To take advantage of this service, employers should register via the Clearing House online. Once you’ve provided your business’s (including your ABN) and your employees’ details, you will be emailed a user ID and a link to set up your password.
Once you’ve done this, you will only need to make one secure electronic payment to the Clearing House and it then distributes the contributions to your employees’ various super funds.
You can also access your payment history whenever you need to, as well as additional information about superannuation guarantees.
Why it’s Good for Business
- It minimises time and paperwork
- You can nominate regular contributions
- Once set up, payments take minutes
- It’s always available to use
Meeting your superannuation requirements can take up a lot of time and money, but using the ATO Small Business Superannuation Clearing House is a fantastic way to reduce these costs and ensure you are effectively looking after the super needs of your staff.