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Home / How super works / Employers guide to super / Managing your employees’ SG contributions? Technologies you need to know

Managing your employees’ SG contributions? Technologies you need to know

November 13, 2020 by Janine Mace Leave a Comment

Reading time: 4 minutes

On this page

  • Meeting your SG obligations
  • What is SuperStream?
  • SuperStream: what you need to know
  • Am I exempt from using SuperStream?
  • How do I make SuperStream-compliant payments?
  • Clearing house option for smaller employers: SBSCH
  • Single Touch Payroll and SG contributions

Paying and reporting your employees’ Super Guarantee (SG) contributions every quarter can seem like a pretty complex task. 

There’s a range of payment options and new technologies you need to understand to ensure you remain on the right side of the tax man.

To help, here’s a simple guide to help you understand your options and what you need to know.

Meeting your SG obligations

As an employer, you are required to pay quarterly SG contributions to a super fund on behalf of your eligible employees.

You are also required to pay and report your super contributions electronically in a standard format, which is called SuperStream. All your super payments and data reporting must be SuperStream compliant.

The standardised electronic format used in SuperStream is a key part of meeting your SG obligations and it’s used by employers, SMSFs and all APRA-regulated super funds.


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For more information, read SuperGuide article Your simple guide to Superannuation Guarantee (SG) contributions

What is SuperStream?

SuperStream was introduced in 2012 to streamline the process of making super contribution for employees. This standard was agreed to by the super industry to simplify the process of reporting and paying compulsory employee SG contributions to super funds.

SuperStream is not a tool for making super contributions, but rather an IT framework to electronically send contributions and their accompanying data.

The idea behind it is to have a standard format for data and payments so they can be transmitted seamlessly between different entities right across the super system.

SuperStream: what you need to know

The data you send using SuperStream is linked to your payment by a unique payment reference number. This allows you to make all your super contributions using a single transaction, even if the contributions are being sent to multiple super funds.

All SuperStream transmissions are encrypted and use sending and receiving protocols that all parties must follow. For employers, SuperStream makes contribution and rollover processing faster, more efficient and less prone to errors.


Need to know

Employers who are ineligible for an ABN can use their withholding payer number (WPN) to use SuperStream.

Your WPN is noted on your PAYG withholding registration advice or your activity statements.


When you use SuperStream, you’re required to pay your super contributions electronically using electronic funds transfer (EFT) or BPAY.

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Your payments and data must be sent on the same day to allow the super fund to reconcile the payment and information and to allocate your contribution to your employee’s super account.


Super tip

You can use the ATO’s EmployerTICK online service to match an employee’s details held by the ATO prior to making your first contribution on their behalf. EmployerTICK uses the employee’s TFN and other key identity information to validate their details.

EmployerTICK is a voluntary tool designed to help reduce potential errors in your employee contribution data and eliminate queries from the super fund when it processes your contributions.


Am I exempt from using SuperStream?

Most employers making SG contributions for their employees are required to make SuperStream-compliant contributions. There are a couple of exemptions:

  1. If you are a sole trader and are making super contributions for yourself. If you are a sole trader but are making super contributions for an employee, they must be SuperStream compliant.
  2. If you make contributions for directors or employees of your own incorporated business and it pays the contributions for you into your own SMSF. Super contributions to any other super fund than your own SMSF – or for all other employees – must be SuperStream complian

For more on SMSF administration, read SuperGuide articles:

  • Guide to SMSF administration, reporting and record-keeping
  • How to set up an SMSF correctly

Need to know

SMSFs do not need to use SuperStream if they don’t receive any employer contributions, or if the employer contributions are from a related-party employer, such as a family business.

SuperStream doesn’t apply to rollovers to or from an SMSF.


How do I make SuperStream-compliant payments?

The key to the SuperStream-compliance requirements is you need to pay your super contributions and send your employee information electronically, not manually.


Need to know

As an employer, you remain responsible for ensuring your employees’ super contributions are paid correctly – even if you outsource the payment and reporting of super contribution to an external service provider.


You have several choices when you pay and report electronically. You can use your:

1. Payroll system

Employers using a payroll system should check with their software provider to ensure it’s SuperStream compliant.

This is important, as some payroll systems cover both super data and payments, while others only cover data. If the payroll system only provides data reporting, you will need to make your SG contributions to each super fund separately – and it needs to be done electronically.

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2. Super fund’s online system

Most large super funds offer employers making employee super contributions access to an online payment service. These services are designed to make it easy for employers to meet all their reporting and payment obligations through their chosen default fund.

When registering with a super fund, some funds require employers to make contributions monthly rather than quarterly, so it’s important to check before signing up.

3. Superannuation clearing house

A super clearing house is a commercial operation providing a super transfer service to employers.

Clearing houses allow you to make a single online payment for super contributions to all your employees’ super funds. Once you register your employees’ super funds with the clearing house, you login at each payment cycle and make a single electronic transfer. The clearing house is then responsible for distributing the payments to the various super funds nominated by your employees.

Commercial clearing houses generally charge a fee per transaction. Your default super fund may have an arrangement in place with a suitable clearing house.

4. Messaging portal

Another alternative for SuperStream-compliant reporting and payments is a messaging portal. This is a tool for converting contribution data for your employees to a SuperStream-compliant format and sending the data to the relevant super funds on your behalf.


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Although the messaging portal sends the contribution data for you, you still need to make an electronic payment to the super funds for your employee contributions.

Your messaging portal provider and financial institution can provide more details.


Super tip

If you need help with selecting or using one of these options, talk to your accountant or bookkeeper as they should be able to help.


Need to know

If you decide to use a clearing house, the ATO considers your employees’ super contributions as being paid on the date the super fund receives the contributions, not the date you send the payment and accompanying data to the clearing house.

To avoid problems, ensure you allow sufficient time for your payments to be processed well before the quarterly due date.


Clearing house option for smaller employers: SBSCH

For employers with 19 or fewer employees, or an annual turnover of less than $10 million, a good alternative for your SG payments can be the government’s clearing house facility.

The Small Business Superannuation Clearing House (SBSCH) is a free clearing house service managed by the ATO. It is SuperStream compliant and accessible through the ATO’s Business Portal or the ATO online service in myGov.

For more information, read SuperGuide articles:

  • 10 ways myGov can help you master your super
  • What is myGov and how do I use it?

When using the SBSCH, you simply make a single electronic payment to the SBSCH and it distributes the payments to each employee’s nominated super fund.

If you are a small business operator or sole trader with an ABN who hasn’t used the ATO Business Portal, you will need to secure online credentials before using the SBSCH.


Super tip

The ATO has an SBSCH flow chart or decision tool that can help you work out the online service and authentication credential best suited to your particular business situation. There are also links to detailed guides on how you can access the various services.


The SBSCH allows you to:

  • Pay your contributions in a Superstream-compliant way, with the money and data sent electronically in a standard format
  • Nominate a regular contribution amount for each employee
  • Make a single transaction for your super contributions, with the SBSCH securely distributing the money to your employees’ nominated super funds
  • Meet your SG obligations as soon as your payment and instructions are accepted by the SBSCH
  • Access your transaction history.

Single Touch Payroll and SG contributions

Most employers are familiar with the new Single Touch Payroll (STP) regime introduced from 1 July 2019, but they may not know the increasingly important role it will play when it comes to SG contributions.

The STP reporting regime requires employers to report regularly to the ATO all their payments for wages and PAYG withholding, plus all their super information. Each time you run a payroll using a payroll-compliant platform, your employee payroll information is lodged with the ATO.

With the introduction of STP, the ATO has much more visibility of employer compliance with their SG obligations and has flagged it will be taking a much more active role in auditing and enforcing employer compliance. So, if you have not always paid your SG contributions on time, now may be a good time to review your internal systems in this area to avoid problems in the future.

For more information, read SuperGuide articles:

  • What to do if your employer doesn’t pay your super
  • Does the ATO do enough on unpaid super?
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Learn more about employer super responsibilities in the following SuperGuide articles:

Quiz: Employer super responsibilities

December 1, 2020

Employee or contractor for super purposes? How to tell the difference

November 13, 2020

How to create an effective salary sacrifice arrangement with your employees

November 13, 2020

Employee super contributions for the self-employed and micro businesses

November 13, 2020

Checklist for employers: 7 tips to help you master your super responsibilities

November 13, 2020

Employer’s guide to Superannuation Guarantee (SG) contributions: Which employees are eligible?

November 13, 2020

Choosing a default fund for your employees

November 13, 2020

Calculating your employees’ SG contributions? The rules to help get it right

November 13, 2020

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All information on SuperGuide is general in nature only and does not take into account your personal objectives, financial situation or needs.

You should consider whether any information on SuperGuide is appropriate to you before acting on it.

If SuperGuide refers to a financial product you should obtain the relevant product disclosure statement (PDS) or seek personal financial advice before making any investment decisions.

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