Payroll AU: Reduce time to pay employee super funds
Xero is currently using Super House as their superannuation clearing house. Super House hold on to the funds for three days before transferring the funds on to the super fund.
This three day delay is not acceptable and goes against the principle of pay day super.
It should be noted that in the event of superannuation monies not being credited to an employees account within seven business days then the employer could be liable for penalties and not Super House.
Xero need to change clearing house providers or organise for Super Choice to pass on the funds the day after it is received. No more three day delays.
Jeff Jones
shared this idea
Hi everyone thank you for your feedback on superannuation processing times. With the Payday Super changes and the 7-day requirement, we know speed is top of mind.
Currently, most super payments processed through Xero are transferred to fund providers on the 5th business day. You can read more about expected timeframes and legislation updates in our Payday Super FAQs.
We completely understand the demand for faster turnarounds. The entire industry is looking towards faster processing.
To help us gauge the impact on your business, we are moving this request to Gaining Support status. Please vote, comment, and share your experiences below so we can better understand your workflows and concerns.
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David Sainsbury
commented
The solution for me was to change to a different Payday Super provider. My super is with AustralianSuper - they provide a clearing house through somebody called Wrkr. I processed my payroll in Xero and sent my super payment by BPay. I sent it to the fund at 4pm, it was in my super account the next morning.
So, for me the issue is resolved (don't use Xero for super payments).
Regardless, Xero need to fix this - the whole point of payday super was to ensure super is paid into staff accounts quickly. The new payday super service by Xero has exactly the opposite effect.
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Matthew Branson
commented
Hi, I came here to post the same message. Xero needs to talk with the other stakeholders ie clearing house and super fund, to get super payments arriving sooner. I submit super for payment on the same day I pay my employees wages and I see on zeros super report that it typically is 7 days later that my employees super fund gets the money. In an age where payment outages occasionally happen, various businesses are hacked or IT systems can go temporarily offline I want to see super arriving within a few short days on average so any delays don’t mean myself and thousands of small business owners have to lose deductibility of the super and have to pay all the penalties and pay bookkeepers to fill out the relevant late forms. That doesn’t seem fair when we are paying super the same day we pay wages!!