The Lowdown on the Small Business Superannuation Clearing House

If you’re a small business owner, you’ll know that you’re required to pay your employees (and certain contractors) superannuation guarantee (SG) in addition to their salary or wages. But how do you pay your SG contributions in a simple and effective way? The answer is through a superannuation clearing house (SCH).

A superannuation clearing house is an online portal that allows you to make all your super contributions for all your employees in one single payment. The clearing house will then distribute the money to each employee’s super fund on your behalf and according to your instructions. This means using a SCH can save you time and also minimise the risk of payment errors.

WHY DO CONTRIBUTIONS HAVE TO BE MADE ELECTRONICALLY?

Back in 2012, legislation was passed to make electronic payment of super compulsory. This was done to reduce the number of missing and lost super payments and make managing and reporting on payments simpler for businesses. As a result, employers must send contribution payments and data electronically in a standard format called ‘SuperStream’. SuperStream transmits money and information consistently across the super system between employers, funds, service providers and the ATO. The data is linked to the payment by a unique payment reference number.

WHERE DO I FIND A SCH?

There are a few options available when paying super to employees’ super funds which meet the SuperStream requirements. These include:

  • Using a payroll system which is in line with SuperStream requirements, such as MYOB and Xero.
  • Using your employer-nominated super fund’s clearing house – most super funds provide access to a SCH service and will help you set up your account.
  • Using the ATO’s ‘Small Business Super Clearing House’ (SBSCH) – this free service is available to small businesses with 19 or fewer employees, or a turnover of less than $10 million a year.
  • Using a commercial SCH of your choice – there are a number of private/commercial SCH service providers but they do generally come at a cost.
WHAT TO CONSIDER WHEN CHOOSING A SCH
Is the SCH SuperStream compliant?

It may be worthwhile looking for another SCH if your preferred SCH does not meet the Government’s SuperStream and Single Touch Payroll requirements.

Is there a cost?

If you’re using a payroll system that offers a similar service to a SCH, there may be fees involved to use this software. If fees apply, check if the charge is per employee or per transaction as this will allow you to estimate your annual cost. Other SCH services can be a low or no-cost option, so it’s best to research the costs involved (if any) before you choose a service.

How long does it take to process payments?

The time it takes for your payment to be processed by the SCH and deposited into employee super fund/s must be considered. For example, if you use the ATO SBSCH and provide the ATO with all of the required information, payments may take up to seven business days to be transferred through the clearing house before they reach employee super fund accounts. Thus, choosing a SCH that processes payments quickly and efficiently may minimise the number of enquiries from your employees.

Does the SCH automatically validate employee information?

It is worthwhile asking the SCH if they use the Australia Post database to automatically validate employee addresses. This will minimise the chance of errors and speed up processing times. 

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This is a de Kretser Client Information Newsletter keeping you on top of the issues, news and changes you need to
know. Should you require further information on any of the topics covered, please contact us via the details below.

T: +61 3 9550 6900 E:admin@dekretser.com.au

A Heartfelt Letter to the Women in the Industry

I have been working in the accounting industry for over 50 years. There is so much I can speak about in regards to changes in technologies, software development, shifts in clients’ needs and so on. The one thing that stands out the most for me is that throughout the years there has been a rise of female Accountants in the workplace. It doesn’t seem that long ago that the industry, traditionally a prominently male industry, started recognising female accounting professionals. There has been an increase in gender diversity yet I can still remember a time where women had to fight for their title.

I believe the industry has taken significant steps to accommodate and welcome female accountants but we still have a long way to go. I am celebrating International Women’s Day (IWD) 2022 to bring awareness on gender equality. There has been an increase of female professional Accountants throughout the years and their contribution to the profession and industry has been immense. I want to break the bias.

de Kretser has a powerhouse of talented women

I work amongst these women and I can wholeheartedly say they are the reason the company is what it is today. They’ve held up the fort throughout the years by supporting business activities, ensuring workflow and managing client portfolios. They brought something I could never offer myself. Thank you Atisa, Kirsty, Ainsley, Cindy, Kimberly and especially my wife Suzie for playing essential roles in the business.

I’ve passed on the baton to my daughter Atisa, with whom I’ve created a partnership and developed a wonderful working relationship. Atisa is also part owner of de Kretser Chartered Accountants and a Principal. It has become her time to lead the new generation. She is a systems thinker and always sees the bigger picture. I commend Atisa for her hard work and for everything that she’s achieved from such a young age.

I recently had a nice talk with Atisa over coffee and she told me something I will never forget. While she was studying to become a CA, many women were discouraged from pursuing their studies as they felt like they were expected to fail. This absolutely shattered me as I never imagined it to be this way.

I want to underline the hard work, passion and courage of all the women in the industry and my way of showing support for International Women’s Day 2022 is through this heartfelt letter. This one goes out to all the remarkable women in the industry – To the ones I’ve never had the pleasure of working with and to the ones that have brought me so much insight throughout the years, I hope the accounting industry has treated you well. Thank you for your contribution to the profession.

Sincerely,

Patrick de Kretser

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We Grow Together: Valuable Lessons from Boost Self-Esteem Month

It is in the nature of our industry to juggle and balance numbers and we must admit that the world events from the past few years has our team working on overdrive. But it only dawned on us recently- when we found out about “International Boost Self-Esteem Month” that we realised just how crucial self-care is, not only for personal well being, but for business productivity as well.

Throughout the month of February, we’ve taken our team on an important journey of self-reflection, self-evaluation and self-care. Our team building activities, meetings and celebrations created positive outcomes. We addressed crucial subjects such as communication in the workplace and the importance of tone of voice. We strengthen our relationships, which in return, boosted our morale and increased productivity. Here are a few lessons that our team gathered from Boost Self-Esteem Month.

Taking the time to oversee health and wellbeing isn’t a luxury… it’s a necessity!

We know too well the effects of low self-esteem, especially in the accounting industry. Employees who have low self-esteem can have low confidence, which can also lead to self-doubt. We work in a field where critical thinking and problem solving skills are the key to success. This is why it is important to reduce the constraints limiting business productivity and the reason why we help our team manage and work on their inner thought process. It is our duty of care to ensure employees have a healthy opinion about themselves.

Self-esteem requires work, time and effort. It requires obligations and commitments

We’ve always made it our top priority to ensure our team’s morale stays elevated. We created a positive work environment, one that ensures all staff feel safe, secure and that allows for personal growth. de Kretser Chartered Accountants provide training and tools including modern accounting softwares to ensure employees are continuously supported and well surrounded.

”Self-esteem is creating the better version of yourself ”

Our team manages portfolios for various types of clients, across different industries such as hospitality and construction. We also work closely with high-net-worth individuals who hold personal and sensitive information. This is why face to face meetings are such a crucial component to building trusting relationships. We need to be able to communicate efficiently and ensure business and clients are on the same page. We believe there is a strong need for Accountants to be relatable. It may not be a trait commonly found in your everyday Accountant but for our team at de Kretser, it is our point of difference. It means we are continuously improving our communication skills and learning how to respond to clients’ needs and wants. Learning to be more relatable is an acquired skill and one that lead to creating a better version of ourselves.

“Self-esteem in business means asking for help when required”

Being in business doesn’t necessarily mean you need to have all the answers, play different roles or even wear different hats. It is ok to ask for help and guidance along the way. There are many internal functions as well as operational aspects to a business. For example, overseeing areas such as payroll, bookkeeping and compliance can be time consuming tasks, which may take away from creating further business opportunities or impact on the business’ main focus.

All in all, here’s what you need to remember:

  • Be kinder to yourself, especially when learning new tools, tricks or starting a business
  • Use your network and connections to your advantage. Collaboration is key as we all possess a trait or skill that is deemed valuable to the next person. This is a great way to support and boost each other’s self-esteem.
  • Don’t be afraid to ask for help. Trust that when there is a situation out of your control, there will always be professionals waiting to assist.

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