Your employer clients now need to make sure their super contributions are received by their employees’ super funds within 7 business days after payday. We understand it may take time to adjust to this new requirement. Employers who genuinely try to do the right thing will not be the focus of our compliance action in the first year.
Here are our top tips for employers to keep their super contributions on track.
Check the fund accepts payments
The new member verification request (MVR) allows an employer's payroll software or clearing house to verify that an employee's super fund details are valid, and the fund can accept payment.
Encourage your employer clients to use the MVR:
- before making a payment to a super fund for the first time
- where employee details have changed
- if a payment has been previously rejected.
For new employees or payments to a super fund for the first time, they have 20 business days for the initial contribution.
Although many super funds are already responding to MVRs, not all super funds are ready. Employers should check with their payroll provider or clearing house to ensure the fund is ready before sending them an MVR.
Monitor their payments
Super funds now have 3 business days to allocate or reject a payment.
If a payment is rejected, they need to review the error message, correct any missing or incorrect details, and resubmit to the correct fund. They generally don't need to contact the fund first, as most issues can be resolved by fixing the information.
Know where to find errors and how to fix them
Employers need to make sure they:
- understand common errors and where error messages appear – this can vary between different products across payroll providers. They can check their payroll provider’s help content or review documentation
- act quickly if a payment is rejected or returned – correct an error as soon as possible so their payment can be resubmitted.
Check their payroll provider supports Payday Super
Payroll providers are continuing to update their products to help to make Payday Super simpler.
Your clients can use the Super product registerExternal Link for information on payroll providers to help them select the right one for their business. Note: this register is not exhaustive – there may be other products available which are not listed here.
For more useful tips and examples, take advantage of our Payday Super resources.