The Tax Office has provided insight into the common errors it sees around the use of the Small Business Superannuation Clearing House, and how they can be avoided.
According to the ATO, some common errors it sees around the usage of SBSCH by agents and their clients include inaccurate employee details.
Some common inaccuracies include the Unique Superannuation Identifier (USI), commonly known as a super fund product for APRA-regulated funds; ABN, bank accountant and electronic service address for SMSFs; and super fund member account numbers.
Agents and their clients should also make sure the super fund name only includes alphanumeric characters and no symbols, such as “&”, and check the payment matches the payment instructions and use the correct payment reference number (PRN) when making the payment.
“If an employee’s details change after submission of a payment instruction, but before it has been processed, you or your client will need to delete and re-lodge the payment instruction,” the ATO said.
“If there are errors with an employee’s details, super funds may send the payment back to us. We will then contact you or your client and ask for the information to be updated within seven business days.
“If the information is updated, we will resend the payment to the super fund with the new details. If not, the payment will be refunded back to the employer.”
The ATO took over the reins of the SBSCH system from the Department of Human Services in early 2018, with some early glitches, including the processing and crediting of payments hampering the transition period.
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.
- Australian manufacturers can create their own stimulus
- Here’s what separates success from the rest
By Adam Zuchetti
- 5 workplace trends to watch in 2020
By Nicole Gorton