Hospitality employers: be aware of your super obligations
Employers in the hospitality industry need to ensure they are aware of their new super obligations and consider making any necessary changes now to ensure they are ready, according to the Australian Taxation Office.
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.
Medium and large businesses
Alison Lendon, Deputy Commissioner, Superannuation, said Australian employers in hospitality, such as hotels, restaurants, cafes and bistros that employ 20 or more people need to act most swiftly, with the introduction of the data and e-commerce standard (the Standard) on 1 July, 2014.
“The time to prepare for the Standard is now,” Ms Lendon said.
“If you think your business will need to update software or systems, you should start planning now to ensure you’re ready on time.”
“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.”
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,” Ms Lendon said.
“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.”
Small businesses
Hospitality employers with 19 or fewer employees must comply with the standard by 1 July 2015.
“Small businesses have more time to prepare, according to Ms Lendon.
“However, it’s important to be aware of what’s coming up and what changes you will have to eventually make.”
Clearing House
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 Ms Lendon.
“The clearing house is a free service that lets you pay your superannuation contributions in one transaction to a single location.
“The service will help remove the burden of 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.”
All hospitality 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 nine per cent to 9.25 per cent.
- The existing age limit for employee super guarantee (SG) eligibility will be removed.
Ms Lendon said 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,” Ms Lendon said.
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.
Ms 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,” Ms Lendon said.
“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.
Source: Australian Taxation Office, 12 June 2013
