S U P E R S T R E A M O N T I M E

9YOUR NINE STEP GUIDE

TO GETTING READY FOR

SUPERSTREAM (ON TIME!)

SUPERSTREAM INHOUSE: If your business is planning to get ready for SuperStream inhouse, there are a number of things to consider. It can be time consuming, and can involve some tricky hurdles. Given that getting up and running and fully SuperStream compliant may take several months, it’s best that you start now in order to be ready in time for the ATO’s deadline.

SUPERSTREAM OUTSOURCED: If you currently outsource your payroll, your service provider should be guiding you towards SuperStream compliance.

SUPER- STREAM

WHAT IS SUPERSTREAM? So, you’ve probably heard something about SuperStream, but what is it exactly?

SuperStream is a new data and payment standard for all superannuation contributions mandated by the Australian Taxation Office (ATO). It will affect employers, recipients, payroll providers, clearing houses and super funds including self-managed super funds (SMSFs). Think EFT for superannuation and you’re on the right track. All superannuation contributions must be made electronically and in a standard message format.

The reforms will help reduce cost and complexity in the superannuation system. For businesses, it will mean managing superannuation payments for your employees will become easier and less time consuming. All of this should mean more money in everyone’s superannuation funds!

30 June, 2015 Deadline for companies with 20+ employees to be SuperStream compliant.

1 July, 2015 Companies with 19 or fewer employees may opt in from 1 July, 2015, but must be SuperStream compliant by 30 June, 2016 (as below).

1 July, 2016 Deadline for companies with 19 or fewer employees to be SuperStream compliant.

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steps

STEPS >

Steps Action Suggested Timing1 So what are your options? 120 days before target start date

2 Set target start date 100 days before target start date

3 Collect new information 95 days before target start date

4 Update payroll records 90 days before target start date

5 Upgrade your payroll system 90 days before target start date

6 Connect to provider 35 days before target start date

7 Undertake trial 30 days before target start date

8 First SuperStream contribution Target start date (day 1)

9 Refine process 15 or more days after target start date

EMPLOYER CHECKLIST: Information within has been sourced from the ATO’s Employer checklist.These actions are listed in a sequential order, but in reality may overlap and can be performed in a different order, and some steps you may skip altogether. These timeframes are a guide only, based on a medium-sized business with their own payroll system. You should develop your own plan and timing, especially where large organisations and complex payroll systems are involved.

>>>Use the navigation tool to

your right for quick links to SuperStream employer

guide steps

51 2 3 4 6 7 8 9

51 2 3 4 6 7 8 91step

120DAYS

First, there is no single best solution for making SuperStream contributions. You should be on the lookout for a solution that suits your business’ unique needs. Ideally, you want something that integrates with your payroll process.

• Speak to your payroll software provider or clearing house about their SuperStream plans.

• If you rely on your default super fund for assistance with contributions, you should speak to them.

KEEP IN MIND: You will need to check whether your solution provider will comply with SuperStream requirements, (especially Steps 3 to 6 in this guide). And check the costs and benefits that may be associated with this change.

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SO WHAT ARE YOUR OPTIONS?

PROCEED WITH CAUTION: Even though you may have outsourced key activities, each employer still has a legal obligation to get contributions data and payments right. Check your supplier’s reputation to make sure you are satisfied with any outsourcing or service arrangements.

51 2 3 4 6 7 8 9

Aim to make your first SuperStream contributions as soon as you reasonably can after 1 July, 2014. By starting early you will get the benefits earlier and avoid last minute worries. If you are commencing with a new service provider as your SuperStream solution, remember the earlier you start the less risk you have of being “in a backlog” and potentially not being ready by 1 July, 2015.Many solution providers are ready to help you implement SuperStream now. And many can arrange to send contributions in a different format if a fund is not yet ready for SuperStream.Once you know your solution and timing, contact your service provider to work out a target start date that works for you. (Your default super fund may also provide some guidance here). You will generally need at least three months before your target date to get ready.

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EMPLOYERS WITH 20 OR MORE EMPLOYEES:

Must begin implementing SuperStream from 1 July, 2015 onwards.If you or your solution provider are ready earlier, there is no need to wait and you can start when it suits your business.

EMPLOYERS WITH 19 OR FEWER EMPLOYEES:

19>

20+

2step SET TARGET START DATE

100DAYS

You need to implement SuperStream no later

than 30 June, 2015. The ATO will be checking

whether employers have implemented SuperStream

after this date.

You need to implement SuperStream no later

than 30 June, 2016. The ATO will be checking

whether employers have implemented SuperStream

after this date.

51 2 3 4 6 7 8 93step

95DAYS

There is a minimum set of data you need to collect for new and existing employees. Most of the information on the Contributions Data for SuperStream fact sheet will be familiar, but there is some new information you must now include. To send a SuperStream contribution, you must include:• The fund’s Australian Business Number (ABN).• The fund’s bank account details.• The electronic service address (ESA) of the

fund or product for SMSF.• The employee’s Tax File Number (TFN).• A payment reference number linking data to

payment.• A Unique Superannuation Identifier (USI) and

superannuation product (APRA-regulated funds only).

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COLLECT NEW INFORMATION

SO WHERE DO I COLLECT THIS INFORMATION? You can collect this new information from several sources:• For new employees, the employee superannuation choice

form has this information from June 2014 onwards.• For existing employees, each fund will supply information

specific to their fund.For fund information, many service providers can access the fund details register and can assist with some or all of this information, in which case you may be able to rely on their collection efforts.

+ The ATO maintains a fund details register of all APRA-regulated funds, products, USIs, bank accounts and service addresses. Super fund trustees are required by law to keep this information up-to-date.

If you are an employer with 20 or more employees, the ATO have asked your employees who are Self-Managed Superannuation Fund (SMSF) members to provide you with this new information (including an electronic service address) in plenty of time. However, as you near your target start date you may need to remind your employees to provide this information. While it is up to them to provide it, it is ultimately your responsibility to record the information to be compliant.

CLUE: A USI identifies

the specific superannuation

product for an employee

contribution. It helps to ensure

employee contributions

arrive at the right

destination. In the past, some funds have used a

Superannuation Product

Identification Number

(SPIN). Under SuperStream,

the fund trustee can choose to

continue using a SPIN as their

USI.

GET ITDONE

From 1 July, 2014, where an employee has provided their TFN, you must include it in their contribution record.This is now required by law to prevent funds from losing employee contributions. The TFN makes it easier to match people with their super accounts.

51 2 3 4 6 7 8 9

90DAYS

STEP FOUR: Once you’ve collected the new information, you’ll need to update your payroll records.You could do this manually if the number of records is small, but you should add the information to a payroll system wherever possible.If your payroll software provider has not yet released a SuperStream compliant version, you may need to check with them how they will hold this data and be compatible with future upgrades. If you work with a clearing house, bureau or other external provider, you will need to arrange how and when this information is forwarded to them (or updated in their records). As they are working on your behalf, the SuperStream standard does not prescribe how you send this information to them. You can send it in hard copy, via an electronic file or enter it directly to a system they provide.

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STEP FIVE: If you use payroll software, your software provider will be able to tell you whether an upgrade is required and if so, when they intend to release a SuperStream compliant version of their product. You will need to organise an upgrade and testing process with your supplier.

UPDATE PAYROLL RECORDSUPGRADE YOUR PAYROLL SYSTEM

You need to implement SuperStream no later

than 30 June, 2015. The ATO will be checking

whether employers have implemented SuperStream

after this date.

Your payroll provider may have links to another supplier

that collaborates with them to produce compliant

SuperStream messages.

4step UPDATE PAYROLL RECORDS / UPGRADE YOUR PAYROLL SYSTEM

&5

51 2 3 4 6 7 8 9

STEP SIX: Depending on the solution you choose, you may need to arrange connections and security log-in credentials with your service provider or default super fund.Some default super funds may offer an online application where you can upload files as an alternative to the SuperStream standard message format. However, if you are using a service provider you should check with them first. If you choose to use this alternative channel, you must sign an agreement with that fund (typically an online acceptance clause on your first time through).

STEP SEVEN: Your service provider may provide an opportunity to test your solution. You’ll need to work with them on the details of any test and how you’ll apply what you’ve learnt.

Some service providers will do this on your behalf, and apart from providing source file information, you may not need to be involved.

35DAYS

6step CONNECT TO PROVIDER / UNDERTAKE TRIAL

&7

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30DAYS

51 2 3 4 6 7 8 9

If you have worked through all the steps of this guide, you should now be ready to make your first SuperStream contribution.

You should plan to have dedicated resources to support the first transaction and deal with any issues as soon as they arise. Good communication with your key service provider and/or default super fund will be critical in ensuring this is a success.This might be as simple as a fall-back plan to manual processes (mail and cheque) or using an alternative electronic channel.

If there are problems, ensure your super guarantee obligations are met and then work with your solution provider to resolve the problems as quickly as possible.If you are processing contributions yourself, you need to include a unique payment reference number with each payment – remembering you need a payment for each fund or product you are sending contributions to.

“D”DAY!

8step FIRST SUPERSTREAM CONTRIBUTION

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51 2 3 4 6 7 8 9

YOU WILL NEED TO:

• Run a trial payroll balance for your contributions with a subtotal for each fund• Process your payments and generate a unique payment reference number associated

with each payment• Copy these reference numbers and add them back into your contribution files before you

send the files as data messages.

This ensures your data and payments are ‘linked’ and can always be reconciled by recipients.

If you have outsourced payments to a service provider, your provider will generally only need a single payment from you and will generate the

reference numbers and match the data and payments on your behalf.

15DAYSPOST

8.5 &9

step FIRST SUPERSTREAM CONTRIBUTION / REFINE PROCESS

You should refine your SuperStream contributions process as it settles down and moves toward

‘business-as-usual’. This may include correcting repeat sources of errors, or making changes to your practices based on your experience to get

lasting improvements.

YOU SHOULD HAVE A

CONTINGENCY PLAN IN CASE

THERE ARE PROBLEMS WITH YOUR

FIRST SUPERSTREAM

CONTRIBUTION.

“D”DAY!

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SETTING A DATE FOR SUPERSTREAM: If you belong to the group of employers that need to be ready by 1 July, 2015, the time to start is now.

If you manage your payments yourself, set up your plan and timeframes to be ready and compliant. Everything needs to be fully in place by end of June, 2015.

Alternatively, talk now with payroll software providers, payroll outsourcers and payment providers to understand what they will do, and what you will need to do.

Inhouse or outsourced; you need to start collecting the new information as soon as possible. The earlier you have everything in place, the more time you will have to deal with any issues that may arise when you start operating to the standard.

SELF-MANAGED SUPER FUNDS

DON’T FORGET

SELF-MANAGED SUPER FUNDS: SMSFs also need to complete work in order to receive funds in the new SuperStream format. All SMSFs will need to ensure they have the following details in order to receive contributions made by your employer:• Self-Managed Super Fund name• ABN of the SMSF• An Electronic Service Address Alias• BSB and Account Number.

SET A DATE

Disclaimer: This guide summarises the main steps most businesses will need to take to implement SuperStream. Each business and super fund has its own needs and you should obtain your own advice from your payroll provider or clearing house. Check with them and the ATO website periodically to ensure you have the latest information.

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Using ADP’s Electronic Payment Services (EPS) helps manage the transition to SuperStream for our clients and their recipients.

Find out how ADP can help you get ready for SuperStream. You can contact our team on 1800 000 729Alternatively, provide your details at adppayroll.com.au/contactus and one of our team will contact you.