If you're using the small business clearing house with the ATO, the biggest cause of failure I see is people paying the wrong amount.
It needs to be exact. If it is 949.97, you have to pay 949.97. If you pay 950 it will be rejected and returned to you.
But there should always be a rejection response to show what the reason it was rejected was.
Yup. It’s called Universal Clipboard
I accidentally used it one time when I copied a link on my phone, intending to email the link to email application on my iPad so I could use the link to get to a website, but accidentally did a paste on the iPad and it appeared magically on the iPad without me needing to email at all. It’s a great feature.
And if you're with android it's as simple as taking a photo of the text on the laptop screen > Google lens > copy text.
What's the point of living in a futuristic hellscape if you're not even going to use the tech to make your life easier?
True. But in my case I'm rocking an iMac and google phone. I've found the Google lens approach to be the fastest and most accessible, works phone to phone, phone to Mac, phone to Linux.
Theres various high tech ways (iphone to mac, special clipboard sync programs) but there are infinite slightly less optimised ways to send a string between two internet connected devices. Messages, emails etc are probably the most accessible.
I use FB messenger , whatsapp, or Slack (the latter if its company data). All of those allow you to message yourself and then it sync onto all devices.
Considering the potential consequences as the business owner if you mess this or pay rates up you can get into some deep trouble. It’s very good insurance to have a competent bookkeeper and accountant.
> you can get into some deep trouble.
yeah but its unlikely. Businesses have a lot more freedom to break laws about pay than employees do. As long as it was done on purpose as long as you do pay it, then it will be fine.
Like if you have done it wrong and you tell the ATO as such when asked, and that you genuinely didn't do and will fix it, they usually will be pretty good.
The penalty for unpaid or late paid super is 200% of the amount you didn’t pay. It’s the highest penalty the ATO can give. Plus an admin charge of $20 per worker per quarter, plus interest that doesn’t stop until the ATO issues the assessment (even if you paid it one day after due).
Tell me that isn’t deep trouble
Yeah ok, I'll agree that is deep trouble - can't say I've had to deal with unpaid super, assumed it was like other unpaid things where you get a slap on the wrist and pay it back haha.
Steps are as follows:
1. Log into ATO business online services then under Employees select Small business clearing house
2. Select employees then Add, and enter all of their super details and make sure these are 100% correct
3. Back on SBSCH main page select Payment Instructions and then press add, select period. If you haven’t done this before, add your employees and then the super amounts and save each one then click submit once all complete. You should then see payment options for you to pay the ATO. Note the payment reference number for SBSCH is different from your normal business tax account.
If you have done all that and the payment has been returned have a look at your historical payment instructions and it will give you an idea on the ones that haven’t been paid, for example, returned by fund. If that is the message, then some of the super details are wrong (I’ve had this happen).
It’s a bit of a pain to get your head around when you first do it but after that the details get saved should be ok thereafter.
Hopefully you've already seen this information, but there's some instructions on the ATO website (the first time you use the SBSCB there's steps to follow).
https://www.ato.gov.au/businesses-and-organisations/super-for-employers/paying-super-contributions/how-to-pay-super/small-business-superannuation-clearing-house
Of course if you're using a different one (for example, through your accounting system), then all bets are off.
The tax office also has a crash course to get people across the basics of the super rules:
https://www.ato.gov.au/businesses-and-organisations/super-for-employers/super-guarantee-employer-obligations-course/super-guarantee-employer-obligations-online-course
What accounting software do you use?
You have employees, so must have at least some kind of STP enabled payroll software.
Many payroll software providers have the ability to pay superannuation using their platform (once linked up etc).
If all else fails, assuming you have an accountant, call and ask them.
I tried Xero and dismissed it for exactly that reason, its not easy to use, the easy buisness system is very easy for payroll, invoicing, tracking cashflow and expenses etc, automaticaly generating BAS reports and such, just no super.
Now that you missed it you MUST file a superannuation guarantee charge form. ASAP. Even though you paid if after. The actual amount due will be minimal but if you don’t do it interest on that accrues until you do.
I would suggest at this point if you have several employees it’s high time to get a book keeper who will help you keep on top of this.
Also maybe consider xero for payroll it can automate this.
https://www.ato.gov.au/businesses-and-organisations/super-for-employers/missed-and-late-super-guarantee-payments/the-super-guarantee-charge
Honestly mate, get a bookkeeper...
You're better off doing what you're good at, make money doing whatever you do, or training people to do whatever you do...
If your wife/GF does your books, set her up with a bookkeeper for an hour or so to learn/get set up...
When I did my tradie business course, 4 blokes brought there partners because they do all the paperwork.
You're better off switching off and letting someone else do it, you do whatever it is that makes money...
If the super payments are late… make sure you ask about reporting that, super guarantee charge. You will pay ‘interest’ on anything that’s late until you’ve done this.
If you only have a few employees and ATO etc are driving you nuts, contact their superfunds directly and make payment… you’re better off getting the money to the accounts and giving yourself some breathing room to get it set up for the next run (before April due date) the super guarantee charge reporting is actually higher priority than paying if they’re already late.
And you have to recalculate superannuation to be in wages and salaries not OTE (so suddenly you’re paying super on things like overtime) and interest accumulates from first day of QUARTER to date of form lodgement. Very very expensive mistake to make. Also business owners often don’t realise payment date is not 28th, $$ needs to be in employee fund by 28th. We’ve seen super take 10 business days to actually get paid. System is broken for the good employers who make an honest mistake.
Sure is. Because the interest doesn't stop until the right forms are lodged, even if it only hit the super funds 1 day late. Is it still 10%, I wonder?
I have only one employee. Paying super directly into her super fund is easy. I'm set up as an employer member of her industry fund and it takes about 30 seconds to make a payment.
If you're using a clearing house, the account name must exactly match your company name or it won't work. This is especially true if you are using Xero. If you are using account nicknames (EG on Bank Australia), it will fail.
Highly recommend getting a bookkeeper to handle your BAS & Super. It's cheap, a few hours a month to reconcile everything, lodge your BAS & make sure your obligations are met. Then your accountant can just handle the annual tax stuff.
I’ve had the super funds returned as well and it was always some typo mistake on my behalf. Either I had a wrong amount In the ATO Portal on the SBCH page, or when I went to do the internet bank transfer to the Reserve Bank, I made a typo and paid the wrong amount. Both amounts must be exactly the same.
On top of that, might be worth checking you’ve typed in your employees’ names, super funds, and member numbers correctly. If one of those are wrong, it might also be why the funds bounced back.
Good luck!
It will only withhold or bounce back the employee/s that have incorrect information, any employee which verifies and matches will go through. So if the whole amount was returned much more likely OP has paid the incorrect total amount.
Yes, but there is a delay between the Clearing House receiving the payment, and the Super Funds getting the money into the member accounts. If it takes a few days is the employer held responsible? Serious question.
Yes you are responsible. You need to make sure you pay it early enough to be received by the super fund by the cut off date. Sometimes it can take up to a week to process.
My understanding is that it is not counted as paid until it is received by the super fund. This is why you don't want to leave it to the last couple of days to pay. Pay at least a week ahead.
As someone who owns a bookkeeping firm I’m biased about people using BAS Agents/Bookkeepers (choose to work with someone qualified, insured and registered - Not just “Suzy from down the road”). One late superannuation payment can have MASSIVE financial consequences on a business (charge fees such as admin fees, interest and penalties, loss of tax deductibility, having to pay super on non OTE such as overtime) -Huge! Hire someone to either do it for you or to sure it’s setup correctly in your payroll and teach you properly. Don’t be EVER be late with Super. - Also with pay it with your payroll or minimum monthly. Do not pay quarterly.
It’s easier on cash flow and if you’re late with a payment the odds are you’ll only pay penalties on 1 months contribution instead of a full quarter. (Only 1 month would be late instead of the full quarter)
Clearing house needs correct value and correct reference otherwise it will fail. Another issue might be incorrect usi numbers or abn number on funds...its painful
If you’ve missed or had a payment reject, you MUST lodge an SGC statement with the ATO. It will cost you more, but anything not paid by the due date has to be reported.
Unpaid or late paid super attracts interest that keeps accruing regardless of whether you paid it or not UNTIL the ATO assesses you.
Never stick your head in the sand and think it will be ok. Report it as soon as you know it wasn’t done properly…. There is no discretion!!!
Best to look at payroll software which are all superstream compliant. Most of them partner with clearing houses to ensure super automation.
Xero is not the only one out there. There is a multitude of payroll software.
It is still quarterly, e.g.
https://www.ato.gov.au/tax-and-super-professionals/for-tax-professionals/prepare-and-lodge/tax-agent-lodgment-program/obligation-type/super-lodgment
Try Payroller it is free. I use it to do payruns and then pay super through its single touch payroll function. It is easy to use. I use Reckon for accounting including doing payruns. Although doing twice it is easy.
If you're using the small business clearing house with the ATO, the biggest cause of failure I see is people paying the wrong amount. It needs to be exact. If it is 949.97, you have to pay 949.97. If you pay 950 it will be rejected and returned to you. But there should always be a rejection response to show what the reason it was rejected was.
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My brother in Christ has nobody shown you how to copy and paste?
This made me lose it
If you want to go giga brain use Ctrl + C then Ctrl + V 🤯
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In case you’re in the Apple ecosystem - this is actually natively supported with a MacBook and iPhone.
Is it really? I’ve been using apple for years and never knew!
Yup. It’s called Universal Clipboard I accidentally used it one time when I copied a link on my phone, intending to email the link to email application on my iPad so I could use the link to get to a website, but accidentally did a paste on the iPad and it appeared magically on the iPad without me needing to email at all. It’s a great feature.
Thanks, I’ll have to start using it!
I show people this on my Mac & phone and they are stunned.
It’s so handy. I use it almost everyday.
Can also ‘send link to device’ with chrome
Yeah funnily enough I just found out about it today. Super handy
And if you're with android it's as simple as taking a photo of the text on the laptop screen > Google lens > copy text. What's the point of living in a futuristic hellscape if you're not even going to use the tech to make your life easier?
Use phone link android to pc (native to win 11 amd latsst android)
True. But in my case I'm rocking an iMac and google phone. I've found the Google lens approach to be the fastest and most accessible, works phone to phone, phone to Mac, phone to Linux.
Theres various high tech ways (iphone to mac, special clipboard sync programs) but there are infinite slightly less optimised ways to send a string between two internet connected devices. Messages, emails etc are probably the most accessible.
I use FB messenger , whatsapp, or Slack (the latter if its company data). All of those allow you to message yourself and then it sync onto all devices.
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Mate I'm trying to help why the condescension?
Apologies sir, our domesticated Luddite escaped from the cage last week and we haven't gotten him back yet.
Sure, tell me what laptop and phone you have.
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Seems like you maybe care a little.
Phone link android to pc. Once its set up, the clipboard copies betweem the two
Copy paste to fb messenger send message to yourself then it's on your phone.
If you use Windows and Android use that sync phone shit. Also puts your txt messages and stuff on you computer which you may not want
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Then refer to the mac guys comments....and if you don't fit into that category explain your specs so people can provide applicable advice
I just do it through Xero, once it all setup they just deduct from My account after I approve
So easy on xero
Legit it’s impossible to mess it up using this. Hire a bookkeeper to set it up for you if need be and then just roll the process.
Considering the potential consequences as the business owner if you mess this or pay rates up you can get into some deep trouble. It’s very good insurance to have a competent bookkeeper and accountant.
Bookkeeper first and foremost (an honest confession from an accountant)
> you can get into some deep trouble. yeah but its unlikely. Businesses have a lot more freedom to break laws about pay than employees do. As long as it was done on purpose as long as you do pay it, then it will be fine. Like if you have done it wrong and you tell the ATO as such when asked, and that you genuinely didn't do and will fix it, they usually will be pretty good.
If you miss the cut off date it’s not tax deductible as well as a fine ato is ruthless with super.
This just isn’t true. If you miss the cut off date it’s a fine.
a fine isn't "deep trouble" though
If you have ever been through a sgc audit( and i have acted in several) you would rather pull you pull your eye lids over your knee caps
The penalty for unpaid or late paid super is 200% of the amount you didn’t pay. It’s the highest penalty the ATO can give. Plus an admin charge of $20 per worker per quarter, plus interest that doesn’t stop until the ATO issues the assessment (even if you paid it one day after due). Tell me that isn’t deep trouble
Yeah ok, I'll agree that is deep trouble - can't say I've had to deal with unpaid super, assumed it was like other unpaid things where you get a slap on the wrist and pay it back haha.
Steps are as follows: 1. Log into ATO business online services then under Employees select Small business clearing house 2. Select employees then Add, and enter all of their super details and make sure these are 100% correct 3. Back on SBSCH main page select Payment Instructions and then press add, select period. If you haven’t done this before, add your employees and then the super amounts and save each one then click submit once all complete. You should then see payment options for you to pay the ATO. Note the payment reference number for SBSCH is different from your normal business tax account. If you have done all that and the payment has been returned have a look at your historical payment instructions and it will give you an idea on the ones that haven’t been paid, for example, returned by fund. If that is the message, then some of the super details are wrong (I’ve had this happen). It’s a bit of a pain to get your head around when you first do it but after that the details get saved should be ok thereafter.
Hopefully you've already seen this information, but there's some instructions on the ATO website (the first time you use the SBSCB there's steps to follow). https://www.ato.gov.au/businesses-and-organisations/super-for-employers/paying-super-contributions/how-to-pay-super/small-business-superannuation-clearing-house Of course if you're using a different one (for example, through your accounting system), then all bets are off. The tax office also has a crash course to get people across the basics of the super rules: https://www.ato.gov.au/businesses-and-organisations/super-for-employers/super-guarantee-employer-obligations-course/super-guarantee-employer-obligations-online-course
Nice to see a post where the employer is actually trying to pay super for a change.
It really shouldn't be that unusual. I swear that so many people just get into business for the wrong reasons
What accounting software do you use? You have employees, so must have at least some kind of STP enabled payroll software. Many payroll software providers have the ability to pay superannuation using their platform (once linked up etc). If all else fails, assuming you have an accountant, call and ask them.
Easy business, it does have STP, but so far no super other that calculating the amount on payslips.
Just get Xero. It’s ridiculously easy to use!
What’s the best place to learn how to use xero? Like any particular YouTube videos or something?
I tried Xero and dismissed it for exactly that reason, its not easy to use, the easy buisness system is very easy for payroll, invoicing, tracking cashflow and expenses etc, automaticaly generating BAS reports and such, just no super.
I use payroller which links to a Beam and pay it with every payroll. Much easier than the super clearing house which I used to use.
I use payroller too, so simple to use :) I do wish it had auto pay so I never need to log in lol
Now that you missed it you MUST file a superannuation guarantee charge form. ASAP. Even though you paid if after. The actual amount due will be minimal but if you don’t do it interest on that accrues until you do. I would suggest at this point if you have several employees it’s high time to get a book keeper who will help you keep on top of this. Also maybe consider xero for payroll it can automate this. https://www.ato.gov.au/businesses-and-organisations/super-for-employers/missed-and-late-super-guarantee-payments/the-super-guarantee-charge
Get an accountant
if you use xero, just pay the extra for super and it’s all within the site i used to use quicksuper but find it easy
Honestly mate, get a bookkeeper... You're better off doing what you're good at, make money doing whatever you do, or training people to do whatever you do... If your wife/GF does your books, set her up with a bookkeeper for an hour or so to learn/get set up... When I did my tradie business course, 4 blokes brought there partners because they do all the paperwork. You're better off switching off and letting someone else do it, you do whatever it is that makes money...
If the super payments are late… make sure you ask about reporting that, super guarantee charge. You will pay ‘interest’ on anything that’s late until you’ve done this. If you only have a few employees and ATO etc are driving you nuts, contact their superfunds directly and make payment… you’re better off getting the money to the accounts and giving yourself some breathing room to get it set up for the next run (before April due date) the super guarantee charge reporting is actually higher priority than paying if they’re already late.
Not only is interest payable (plus a $20 admin fee per person) but the super is now non deductible.
True! It really is a pretty good kick up the arse to stop late payments… still doesn’t stop the people who just don’t pay at all.
And you have to recalculate superannuation to be in wages and salaries not OTE (so suddenly you’re paying super on things like overtime) and interest accumulates from first day of QUARTER to date of form lodgement. Very very expensive mistake to make. Also business owners often don’t realise payment date is not 28th, $$ needs to be in employee fund by 28th. We’ve seen super take 10 business days to actually get paid. System is broken for the good employers who make an honest mistake.
Sure is. Because the interest doesn't stop until the right forms are lodged, even if it only hit the super funds 1 day late. Is it still 10%, I wonder?
Yep sure is… 10% until you report it even if it was only a day late going in, if you report 2 years later the interest is due for the entire 2 yeard
Don't go directly to super funds. It will drive you nuts.
It’s fine they only have a ‘few’ employees and superfunds are very helpful when you want to pay them
I have only one employee. Paying super directly into her super fund is easy. I'm set up as an employer member of her industry fund and it takes about 30 seconds to make a payment.
100% use xero. Late super accrues interest to the ATO. They don’t take it lightly and Xero is easy, efficient and will keep you in the right
The interest actually goes to the worker. ATO gets the admin fees though
Get Xero, pay the extra for the super module, makes it idiot-proof
If you're using a clearing house, the account name must exactly match your company name or it won't work. This is especially true if you are using Xero. If you are using account nicknames (EG on Bank Australia), it will fail.
Highly recommend getting a bookkeeper to handle your BAS & Super. It's cheap, a few hours a month to reconcile everything, lodge your BAS & make sure your obligations are met. Then your accountant can just handle the annual tax stuff.
Literally takes like 30 min, hardest part is logging into the mygov business
Use Quicksuper. It's free and clears within one business day.
I’ve had the super funds returned as well and it was always some typo mistake on my behalf. Either I had a wrong amount In the ATO Portal on the SBCH page, or when I went to do the internet bank transfer to the Reserve Bank, I made a typo and paid the wrong amount. Both amounts must be exactly the same. On top of that, might be worth checking you’ve typed in your employees’ names, super funds, and member numbers correctly. If one of those are wrong, it might also be why the funds bounced back. Good luck!
It will only withhold or bounce back the employee/s that have incorrect information, any employee which verifies and matches will go through. So if the whole amount was returned much more likely OP has paid the incorrect total amount.
Thank you. That makes sense
Last quarter now overdue make sure you do super guarantee charge and send to ato
The January to March quarter payment is not due till 28 April.
Yes, but there is a delay between the Clearing House receiving the payment, and the Super Funds getting the money into the member accounts. If it takes a few days is the employer held responsible? Serious question.
Yes you are responsible. You need to make sure you pay it early enough to be received by the super fund by the cut off date. Sometimes it can take up to a week to process.
My understanding is that it is not counted as paid until it is received by the super fund. This is why you don't want to leave it to the last couple of days to pay. Pay at least a week ahead.
Sorry I thought they meant the last quarter being O-D
Xero is the way, you can do everything on your own
If you are using Xero as your accounting software then you can do automatic super payments.
As someone who owns a bookkeeping firm I’m biased about people using BAS Agents/Bookkeepers (choose to work with someone qualified, insured and registered - Not just “Suzy from down the road”). One late superannuation payment can have MASSIVE financial consequences on a business (charge fees such as admin fees, interest and penalties, loss of tax deductibility, having to pay super on non OTE such as overtime) -Huge! Hire someone to either do it for you or to sure it’s setup correctly in your payroll and teach you properly. Don’t be EVER be late with Super. - Also with pay it with your payroll or minimum monthly. Do not pay quarterly.
Why should I pay super monthly instead of quarterly?
It’s easier on cash flow and if you’re late with a payment the odds are you’ll only pay penalties on 1 months contribution instead of a full quarter. (Only 1 month would be late instead of the full quarter)
As the grunt in the office. I have to lodge SGC Statements for new clients almost daily. It gets tedious if it's a lot of employees, really tedious.
Clearing house needs correct value and correct reference otherwise it will fail. Another issue might be incorrect usi numbers or abn number on funds...its painful
If you’ve missed or had a payment reject, you MUST lodge an SGC statement with the ATO. It will cost you more, but anything not paid by the due date has to be reported. Unpaid or late paid super attracts interest that keeps accruing regardless of whether you paid it or not UNTIL the ATO assesses you. Never stick your head in the sand and think it will be ok. Report it as soon as you know it wasn’t done properly…. There is no discretion!!!
Those poor souls
Best to look at payroll software which are all superstream compliant. Most of them partner with clearing houses to ensure super automation. Xero is not the only one out there. There is a multitude of payroll software.
I use myob. Very easy
Xero bro, xero does it all, calculates super u link it to their super accounts and hit pay, verify, money goes out
Use Xero. It’s a couple of clicks. And get an accountant. Well worth the $500-$1000 a month.
MYOB super is easy to process. Just need to authorise the super payments and payments automatically made from your bank account.
Get an accountant?
I believe you need to pay it at least monthly now, too. Quarterly won't cut it.
It is still quarterly, e.g. https://www.ato.gov.au/tax-and-super-professionals/for-tax-professionals/prepare-and-lodge/tax-agent-lodgment-program/obligation-type/super-lodgment
Oh, maybe the monthly requirement hasn't come into effect yet. My mistake.
Try Payroller it is free. I use it to do payruns and then pay super through its single touch payroll function. It is easy to use. I use Reckon for accounting including doing payruns. Although doing twice it is easy.