19 June 2024
If you manage or own a business that employs people, then superannuation is part of your responsibilities. This includes making timely contributions and keeping accurate records. Super clearing houses can simplify this process for your business.
What is a super clearing house?
A super clearing house is an online portal that allows you to manage and pay all your superannuation contributions for all your employees in a single payment.
The clearing house then distributes the money to each employee’s super fund based on your instructions and the employee’s preferences.
Do I need a super clearing house?
The short answer is yes. In 2012, the Australian Government passed the ‘SuperStream’ legislation which states that employee superannuation must be paid and tracked electronically through an approved online clearing house. This measure was introduced to reduce the number of missing and lost super payments and to simplify the management and reporting of payments for businesses. Hence, protecting the interests of both employers and employees.
SuperStream transmits money and information consistently across the super system between employers, funds, clearing houses and the Australian Taxation Office (ATO).
What are the benefits of a using super clearing house?
Using a clearing house offers several benefits on top of regulatory compliance, including:
- Ease and convenience: You can make your super guarantee (SG) contributions to all your employees at once with a single electronic transaction.
- Security: The money is distributed securely whilst minimising the risk of payment errors.
- Timesaving: Once you input your employee details, all you have to do is make a single electronic payment each time you need to make super contributions.
How do I find a super clearing house?
AustralianSuper offers its employers a free SuperStream compliant clearing house, QuickSuper1. Another free service offered for smaller businesses; that have 19 or less employees, or an annual turnover of less than $10 million; is the Federal Government’s Small Business Superannuation Clearing House . Some payroll software systems are also SuperStream compliant.
3 things to consider when choosing a clearing house
Before selecting a clearing house service make sure it’s compliant with SuperStream. Here are three factors to consider:
1. Costs
Understand any costs involved.
- Some payroll software packages offer clearing house services, but these can be fee-based.
- Some clearing houses charge per employee or transaction.
- Some clearing house services are no-cost, such as AustralianSuper’s clearing house option with QuickSuper.
2. Payment times
The time it takes for your payment to be processed and deposited is crucial. Keep in mind your obligation as an employer is only met once your employee’s super fund has received the payment, and not simply when you transfer the funds to the clearing house. With QuickSuper via AustralianSuper, it’s anywhere from 1-2 banking days.
It’s also worth checking whether your service allows for multiple businesses using one super clearing house login. This is particularly useful if you’re paying contributions for several different businesses.
3. Automatic validation of employee information
Choosing a clearing house that can automatically validate employee addresses using the Australia Post database can reduce processing times and eliminate errors.
QuickSuper: AustralianSuper’s clearing house
AustralianSuper’s clearing house with QuickSuper is SuperStream compliant, secure, fast and free. You don’t need to have chosen AustralianSuper as your business’s default fund to use the service. You just need to have at least one employee who’s a member.
Once you’ve registered as an employer with AustralianSuper, you can sign up for QuickSuper access to get your super clearing house login in a few minutes. From there, you can begin managing your super payments.
References
- QuickSuper is a registered trademark and a product owned and operated by Westpac Banking Corporation ABN 33 007 457 141. Westpac’s terms and conditions applicable to the QuickSuper service are available after your eligibility for the clearinghouse service is assessed by AustralianSuper. A Product Disclosure Statement (PDS) is available from Westpac upon request. AustralianSuper doesn’t accept liability for any loss or damage caused by use of the QuickSuper service and doesn’t receive any commissions from Westpac if employers use this service. You can choose to make your contributions using a different service, but it needs to meet the government’s minimum data standards, visit ato.gov.au
This may include general financial advice which doesn’t take into account your personal objectives, financial situation or needs. Before making a decision consider if the information is right for you and read the relevant Product Disclosure Statement, available at australiansuper.com/PDS or by calling 1300 300 273. A Target Market Determination (TMD) is a document that outlines the target market a product has been designed for. Find the TMDs at australiansuper.com/TMD.