Changes in super - are you up to date?
This month changes to superannuation arrived - the 1st of November to be exact, and this impacts you as a small business and there are more changes to come from the 1st of January.
Stabled superannuation account
Single Touch Payroll
If you're planning to hire a new employee, you should be aware of super stabling and how it impacts you. The Your Future Your Super reform is a government initiative to save large fees as a result of having multiple super accounts. This impacts you too! If you have multiple super accounts out there, your money is most likely being chewed up by fees and will result in all that hard work disappearing and a bleaker retirement outlook. The super stabled account reduces the chances of multiple accounts and leads to lower fees - a plus for your super! This new stabled account follows you or your employees throughout careers and job changes.
So how does that impact you as an employer?
From now on, any new employees that are onboarded go through a slightly different process. If your employee does not complete the standard superannuation form, rather than electing the company's choice of super - you will be responsible for searching for the employee's stabled account and setting up your payroll information with this stabled account. You can do that here using your employees details - Businesses | Australian Taxation Office (ato.gov.au)
If the new employee does not have a stabled account - it's business as usual.
And how does that change your super and your existing employee's super?
These changes are only for new employees as of the 1st of November - existing super information will not change.
For more information on these changes, head to the ATO Request stapled super fund details for employees | Australian Taxation Office (ato.gov.au)
Single Touch Payroll
Single Touch Payroll has already been in place for some time, but new changes are on their way as the ATO continues to progress the change. For a recap, Single Touch Payroll changes included the way you report tax and super information to the ATO for your employees. The new changes are looking to add to the information reported.
What's included in the rollout?
Tax file declarations will be included in reporting with the use of a tax code for your employee and saves you having to post a hardcopy to the ATO.
Reporting employment basis will become mandatory.
Separation certificates will be eliminated and the reason for termination will now be reported via STP.
Salary sacrifices will have to be reported separately.
You will be required to break down employee's payments into income types (wages and salary, labour hire, etc), you'll need to report country codes and gross payments will be detailed into codes for bonuses, directors fees, paid leave, etc).
Lump Sum E payments will be included in STP reports.
You will be able to report Child Support Deductions eliminating the need for separate reporting to the Child Support Registrar.
The new changes begin on January the 1st, 2022 however, if you use Xero for your accounting, you have an extended period until December the 31st, 2022, thanks to negotiations by Xero.
For more information on Phase 2 of Single Touch Payroll, read the 'Expanding Single Touch Payroll (Phase 2) information sheet Expanding Single Touch Payroll (Phase 2) (ato.gov.au) or head to the ATO's website Expanding Single Touch Payroll (Phase 2) | Australian Taxation Office (ato.gov.au)