Paying employees super through a super clearing house

Paying employees super through a super 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).

What is SCH?

A SCH 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:

What to consifer when choosing a SCH

Below are points to consider before choosing a SCH: