Automatic super payments save you time, are more accurate and mean you don’t have to get in touch with individual super funds each quarter (so we’re fairly sure it’ll also save you sanity!).
We’ve come across many business owners who don’t know about automatic super payments. In fact, we’ve set it up for most of our clients. If you’re in the same boat then hopefully this post – and our resource links – will be helpful.
How to set-up automatic super payments
While each software program differs slightly, in general here’s how it works:
First, you register your employee superannuation preferences into your payroll system – MYOB, Xero or Quickbooks Online, for example – using a step-by-step guide from the software provider. Among other things, you’ll have to give authority for the service to direct debit money from your account when super time comes. Then, when the time does arrive, it’s just a few clicks to review the outstanding super owed to each staff member and then approve payment.
The software providers use what’s known as a superannuation clearing house to direct debit the money from your account and distribute it to each employee’s fund. So, there’s no need to manually pay each fund online and it’s even quicker than using your own clearing house because your software already has most of the information it needs.
Once you activate the automation, the software updates will also help you stay up to date with any government changes to super, so you can rest a bit easier knowing you’re always on top of things.
In fact, many of our clients find automated payments so convenient they start paying super much more regularly, which can help manage cash flow.
Most payroll software programs offer this payment method and it’s usually free with your existing package. (We should note that some of the self-managed super funds are not included in the service though. Just check with your supplier before going ahead if that applies to you.)
Here’s more on how to set it up with three of the most popular payroll software providers:
The team at Slate can offer advice about setting up automatic superannuation payments for your business. Contact us if you’d like to learn more.