Xero Payroll will introduce a new security measure in late November 2022 for automatic superannuation (auto super) payments. It is expected that this requirement will result in the connection of an active bank feed to your registered auto super account.
Why?
Xero wants to offer you a safer way to make payments to your employees with the addition of this layer of protection. To ensure the security of your Xero account, it is essential that you implement this change.
What is auto super?
If you are unfamiliar with Xero’s auto super feature, here is a quick overview.
Since 2011, all Australian employers have been required to comply with SuperStream requirements. A standardised and compliant format is used to communicate superannuation payments and data to the ATO.
With Xero’s Premium and Ultimate pricing plans in Australia, employees have access to an auto super solution that is SuperStream compliant. A third-party clearing house facilitates the transfer of superannuation funds from a registered bank account to an employee’s selected fund in a matter of seconds.
Employers can easily keep track of their super guarantee (SG) obligations using this feature, eliminating the need for manual processing and payment of super.
What is changing?
A new requirement will be added to the auto super registration process in the coming weeks for both new and existing customers. These are the changes that will take place:
- To register and process payments, it will be mandatory for customers who are new to auto super to establish a bank feed (from the bank account, you will be using for direct debit payments to auto super).
- As a Xero customer using auto super, when you re-register or update your registration details, you will be required to ensure your bank account for processing super auto payments is connected to a bank feed.
Are these updates required now if I am currently using auto super?
Existing customers using auto super will not have to make any immediate changes when this new safety requirement is implemented later in November. To continue processing superannuation payments, you will need to connect an active bank feed if you are required to re-register or update your registration details.
Depending on your banking provider, setting up a bank feed may take up to 10 business days. In order to stay ahead, we recommend adding a bank feed to your existing bank account that is registered for auto super (if it does not already exist). In order to ensure the security of your account, you should do this as soon as possible.
Where can I go to learn more?
For more information about the registration process for auto super, contact our office to discuss.
