Super Stream - Xero
If you have 19 or less employees, the reforms for SuperStream are in the process of being implemented with the deadline falling on 30 June 2016. If you have 20 or more employees, the deadline has already passed.
If your business is not yet SuperStream compliant, we are here to help.
SuperStream is intended to ensure the back office part of super administration is more efficient and therefore more cost-effective.
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) will be required to have an Electronic Service Address.
All employees need to complete Section A & B of an ATO Superannuation Standard Choice Form. Please note, your employees may need to contact their super fund to obtain the correct information.
- Log into Xero
- Go to Settings, click Payroll Settings.
- Click the Superannuation tab.
- Add each superfund ensuring that it corresponds with the employees unique superannuation identifier (USI)
- If the fund you are looking for is not in this list, please contact payroll support.
- For Self-managed superannuation funds (SMSF), check the following is correct:
- Electronic Service Address (ESA) Alias
- If your employee doesn’t have this information, they’ll need to contact their super fund to get it.
Step 3- Check your employees’ superfund
- Go to Payroll, then click Employees
- Select the employees name to open their details
- Click the Employment tab.
- Check that each employee has been assigned the correct super fund and membership number.
- Please ensure that all of the employees details are entered in correctly (i.e. name, address, DOB, gender, email address and mobile)
Step 4- Register for Auto Super
- On the Payroll menu, click Superannuation.
- At the top of the page, click Online Registration Form.
- Enter all information, making sure you complete each item in the checklist.
- Click Submit.
Xero will let you know when you are ready to use auto super.
How long does it take for super payments to reach the super funds?
When the authoriser approves the superannuation batch payment and providing it's done before 1pm AEST on a business day, contributions will be sent to the various superannuation funds four business days later. It's then up to each superannuation fund to allocate the contributions to members accounts.
How often are the payments processed?
When you are registered for automatic super payments it is up to you when you create your auto super batches. You will be required to select a commencement date when registering. This is the payment date of the first pay period you'd like to start using auto super from.
When the authoriser processes the super payment, as long as the payment batch is authorised and approved before 1pm on a business day, funds should reach the various superannuation funds listed in the payment batch within three to four business days. Click Super; provide the superannuation funds with contribution advices based on the employee superannuation information recorded in Xero.
Create a new payment batch
You can filter this list by employee, super fund, employee group or payment due date by clicking on the column headings.
- Go to?Payroll?>?Superannuation.
- Click?+ Add Super Payment.
- From the payment details page, choose the lines to pay from the list of posted pay runs.
- Once you have selected your accruals for inclusion in this batch, click?Submit for Approval.
You will be redirected to the superannuation home screen where the batch will appear as 'pending authorisation'.
Your nominated authoriser will receive a text from Xero with the authorisation code, which is valid for 24 hours. We'll also send an email letting them know we sent an SMS.
Authorise a payment batch
If you have received an SMS with a code to approve a superannuation payment batch, please take the following steps.
- To authorise a payment batch, log in to Xero and go to Payroll > Superannuation.
- Click on the batch which shows as 'Pending Approval'.
- Review the list of payments included in the batch.
- If you notice anything amiss, you can delete the payment.
- If everything looks good, click?Approve & Submit, then enter the authorisation code you received in the SMS
Once you have authorised the payment batch, it will appear as Awaiting Processing.
The payment details are then sent off to our third party superannuation clearing house (ClickSuper). They will direct debit the authorised bank account the total amount payable from your batch and distribute to your employees' super funds.
Reconcile super payments
After you have made your super payments, you will have spent items showing on your bank statement. Rather than reconciling to a bill, you will allocate the payments directly to your payables account, which will reduce the balance outstanding. To do this, take the following steps.
A super accrual amount is included within your payroll bill, allocated to your super payables account.
- Go to the Dashboard.
- Find the bank account your super payments went out of and click Reconcile Items.
- Find the statement line for your super payment.
- On the Create tab on the right hand side:
enter the name of the super fund
select your superannuation payable account
add a description.
- Click OK to reconcile.s