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  1. Payroll AU: Reduce time to pay employee super funds

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    5 comments  ·  Payroll & expenses » Payroll  ·  Admin →
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    Gaining Support  ·  AdminDavid Reynolds (Admin, Xero) responded

    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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    Egle Usaite commented  · 

    Thanks for the response, David, but it confirms the problem. If Xero's clearing house holds funds until the 5th business day, that uses up most of the 7-business-day window employers have under Payday Super, before the money has even reached the fund.

    That leaves just two business days to cover everything that can go wrong. A fund could be slow to allocate, a member's details could be wrong, or a contribution could be rejected and returned, and the employer then has to correct and resubmit. Any of these can push a payment past the deadline.

    The key point is that the legal liability sits with the employer, not the clearing house. If a contribution lands late because it sat with the provider for five days, the employer bears the Super Guarantee Charge and penalties. We're being asked to carry the risk for a delay we can't control.

    The whole intent of Payday Super is that super moves with wages. Holding employee money for most of a week runs against that, and it's hard to see what value the delay adds for employers or employees.

    What we're asking for:

    Funds passed on to the super fund the business day after they are received, or
    If the current provider can't do that, a move to a clearing house that can.

    Egle Usaite supported this idea  ·