It puzzles me how many people don't use Auto super in Xero. It also puzzles me how many people don't pay super on time! Super is a statutory requirement. Each week or fortnight when you process payroll you should be putting the super you owe for your employees aside. This is not your money to spend. We always suggest setting up 2nd bank account called a tax account, transferring the super to this account when you process payroll. This means when it's time to pay you will never be short.
There are really harsh penalties for not paying super.
Everyone would remember the nightmare that was super payments years ago. You had to report to every single super fund your employees had individually and pay each fund individually as well! Clearing houses made this a little simpler but you still have to type in the information manually each month for the amount of super that needs to be paid for each employee AND set a new employee up manually.
Thankfully there is a solution that helps you #banadmin :)
Auto Super in Xero
Instead of having to manually add new employees to your clearing house or type in the amounts to pay each month or quarter all you need to do in Xero is click the super button, decide what you want to pay and press process. You are then sent a code for you to authorise the money to be transferred from your bank account.
It's really easy to make a mistake when having to type in numbers from one system to another. Not to mention the wasted time.
1st step
You need to register for the auto super service just like you do any clearing house.
It's a simple process. All you need to do is register in Xero here
You need to be on the Premium Xero Subscription $60. We upgrade all of our clients to this plan as auto super is a MUST feature.
Procesing
Once you are setup, processing is simple. You click on Payroll > Superannuation > + Add Super Payment. You can then sort by due date and even filter so you are only shown super due this month.
Select the payments, press submit for approval and you will be sent a code to authorise the payment.
You type in that code and ClickSuper (the processing providers Xero use) will debit the total from your bank account, distribute the money to your employees super funds and complete all necessary paperwork.
It really is that simple! Setup a bank rule for the payment when it comes out of your bank account and the super process is complete!
As a business owner you have so many things you need to keep on top of. There is no point adding complexity and processing time to that by manually processing and paying super.
