Making the move from quarterly super to Payday Super

Deputy Commissioner Emma Rosenzweig explains how employers can manage the move from quarterly super to Payday Super.

There’s less than seven weeks until Payday Super starts. This change affects how you manage payroll, cash flow and payment timing, which is why now is the perfect time to turn planning into action.

To help you manage the move to Payday Super with confidence, we’ve released a new suite of Payday Super resources, including web content and 2 short videos.

Managing the changeover to Payday Super

During July, you may need to manage more than one super payment, including:

• your final quarterly super payment due 28 July
• one or more Payday Super payments for July paydays.

ATO knows this overlap can raise questions, particularly around which rules apply when, how payments are applied and how to avoid mistakes.

ATO’s web content and video explain the changeover period between June and July and what to plan for to help reduce last-minute pressure.

What’s changing with SG and SGC

You may also be wondering about the changes coming to the super guarantee (SG) and the super guarantee charge (SGC).

Watch ATO’s video to understand what’s changing under Payday Super, how super will be calculated using qualifying earnings and what it could mean if payments are late or missed.

Payday Super payroll tips

By preparing now, your business will be best placed to transition smoothly. Payroll isn’t just about software – it’s about having confidence that your people, processes and record keeping will work for your business every payday.

Key steps to focus on include:

• checking your payroll software can support SuperStream changes and report qualifying earnings through Single Touch Payroll
• reviewing employee super fund details to reduce the risk of rejected payments
• knowing where payment errors will appear and how to act on them quickly – if you’ve paid on time and don’t receive an error message, you should assume you’ve met your obligations
• keeping clear and accurate payroll and super records so you can track what’s been paid.

If you haven’t already, work through the ATO’s employers’ checklist to confirm your software and processes are ready for 1 July.

Keep up to date

ATO has tailored communication channels just for small businesses – so you’ll always be up to date with the latest information and changes relevant to you.

Explore more articles in their Small business newsroom.

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Source: ATO