SuperStream is here! It is time to get on-board before the grace period ends and the ATO starts fining employers for failing to comply. This article with cover how to implement Superstream in Xero specifically. For a more general discussion around Superstream obligations, options and information requirements read our comprehensive article here.
Xero & Superstream – Where do I start?
The first step is ensuring you have all the relevant information regarding your employees and their superfunds.
Once your employees have provided the necessary information its time to update Xero ready for your next payrun. Xero have implemented ‘Auto Super’ across all their premium plans to make this process as easy as they can for business owners.
Step 1 – Add or Update Superfunds
Within Xero’s payroll set-up you need to add each superfund that your employees use. If you already have superfund’s added to the payroll system you will need to update these funds with any new information. In particular, the Unique Superannuation Identifier (USI) is likely to be new information.
Step 2 – Update employees information
Once all relevant superfunds have been added or updated please ensure the correct superfund has been selected for each of your employees. This will ensure the correct information is reported to each superfund.
Step 3 – Start Using Auto Super
Now you’re ready to make your superannuation payments. The system works in a very similar manner to the normal batch payment function in Xero.
– Create a new super payment batch
1. Go to Payroll > Superannuation.
2. Click + Add Super Payment.
3. From the payment details page, choose the lines to pay from the list of posted pay runs.
4. 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’. The authoriser will receive a text from Xero with an authorisation code, which is valid for 24 hours.
– Authorise the payment batch
Once you receive the SMS with a code to approve a superannuation batch payment:
1. Log in to Xero and go to Payroll > Superannuation.
2. Click on the batch which shows as ‘Pending Approval’.
3. 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 sent off to ClickSuper, Xero’s third party superannuation clearing house. They will direct debit your bank account for the total amount payable for your batch and distribute the relevant amounts to your employees’ superfunds.
A Final Word
Xero has extensive how-to guides as part of their knowledge database. I’d recommend anyone using Xero that needs help getting Superstream up and running have a scan through this information. If you still need more assistance your Accountant or Bookkeeper should be able to assist further.
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