Franchisees in the retail industry need to ensure they are aware of their new super obligations and consider making any necessary changes now to ensure they are ready to meet their obligations, according to the Australian Taxation Office.
ALL EMPLOYERS
The following reforms will take effect on 1 July this year:
• Employers must increase the compulsory super payments (Super Guarantee) they make on behalf of their eligible employees from 9 percent to 9.25 percent.
• The existing upper age limit for employee super guarantee (SG) eligibility will be removed – you will need to begin paying super for eligible employees who are aged 70 years or over.
Alison Lendon, deputy commissioner, superannuation, says the administrative changes to super guarantee coming into effect on 1 July this year are relatively straightforward for employers.
“Software and payroll providers already have scheduled system changes and release processes to ensure employers will be ready for the 1 July 2013 SG changes,” Lendon says.
If you prefer to calculate super guarantee payments yourself, the ATO has a range of useful tools available at ato.gov.au/supertools.”
MYSUPER
MySuper is a new, simple and cost-effective superannuation product that will replace existing default super fund products.
Lendon said employers must make super guarantee payments for employees who have not selected a preferred fund, to a fund that offers a MySuper product, by 1 January 2014.
“For most employers, it is expected that their existing default fund will offer a MySuper product,” Lendon saus.
“These employers will not have to make any change to the payment of superannuation guarantee contributions. Your fund should contact you to advise that they will offer MySuper product and any changes to the entitlements of your employees.
“If you are unsure, or want more information on the MySuper product offered by your default fund, you should contact the fund.”
Funds are allowed to start offering MySuper products from 1 July 2013.
THE STANDARD
Be aware of your options for meeting the new data and e-commerce standard (the Standard).
The superannuation data and e-commerce standard is being introduced to make it possible for employers to send contributions to all funds in one standard electronic format. The benefits of a standard format
includes reduced processing time and costs.
The Standard is part of the Government’s SuperStream measures to ensure all movements of money within the super system are transferred electronically.
Once implemented, the standard will provide a consistent and reliable method for processing superannuation payments electronically and result in:
• fewer data quality issues
• a simpler, more consistent contribution process
• fewer lost accounts and unclaimed monies
• faster processing of employees’ money into their super accounts
• lower overall processing costs.
“The standard is about moving super into the 21st century and removing much of the administrative burden and the inefficiencies faced by employers,” Lendon explains.
“The goal is to improve the efficiency of the superannuation system, to improve the timeliness of processing of contributions and reduce the number of lost accounts and unclaimed monies.”
MULTI UNIT FRANCHISEES
Australian retailers that employ 20 or more people need to act promptly, with the introduction of the data and e-commerce standard on 1 July, 2014.
Lendon says the time to prepare for the Standard is now,
“If you think your business will need to update software or systems, you should start planning now to ensure you’re ready on time,” she says.
“If you prefer to process your employer compulsory super contributions yourself, you can work with your default super fund or payroll supplier to meet the new data and e-commerce standard. Other partners, including accountants and clearing houses, will be able to help as well.”
FEWER STAFF – MORE TIME
Small businesses have more time to prepare. Retailers with 19 or fewer employees must comply with the Standard by 1 July 2015.
“However, it’s important to be aware of what’s coming up and what changes you will have to eventually make,” Lendon says.
One option to help employers with 19 or fewer employees to comply is to take advantage of the Small Business Superannuation Clearing House, according to Lendon.
“The Small Business Superannuation clearing house is a free service provided by the Department of Human Services that lets you pay your superannuation contributions in one transaction,” she says.
“The service will help reduce administration and help you to meet your obligations.
“You simply register your employees’ superannuation fund details and the contributions will be distributed to their various superannuation funds.”
There are also a range of commercial clearing houses which may benefit your business.
Other information is also available from:
• ato.gov.au/employersuper
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