Running a small business isn’t for the faint hearted and improving efficiencies is always on the radar. One business process that can often be improved is the payment of employees’ super.
A clearing house is used by employers to make a single online payment for super contributions to their employees’ super funds. In most cases, one clearing house can be used to make super payments for all of the funds elected by their employees. The business simply registers the super details of each employee and makes a single electronic transfer to one clearing house each payment cycle.
However, something we’ve noticed at Tasplan is that many businesses are registering with a clearing house for each fund they pay super into.
Using multiple clearing houses is unnecessary and can mean that the business could pay fees to each of the clearing houses that they use. Having a single clearing house reduces time, paperwork and saves businesses money.
The Tasplan clearing house enables employers to pay into multiple super funds using one data file and one payment, send their super contributions electronically, and easily keep track of super payments.
The Australian Taxation Office offers the Small Business Superannuation Clearing House free for employers with 19 or fewer employees or an annual aggregated turnover of less than $10 million. This SuperStream compliant clearing house can be used to make super guarantee contributions.
I strongly encourage employers to review the clearing houses they currently use and think about whether reducing the number could increase efficiency in the way they pay their employees super.
Wayne Davy is CEO at Tasplan Super. We're a Tasmanian based profit-for-members super fund which has grown to be the state’s largest and only locally based super provider, with some $9.7 billion under management.