SBSCH Alternative, Process your Superannuation in 30 seconds...
You may have tried the Small Business Super Clearing House (SBSCH), and found it’s not quite for you.
But you’re a little stumped as to knowing your options.
Rest assured there are a number of solutions you can check out that will provide an effective alternative to using the SBSCH.
Not only will these options offer pain-free superannuation processing but will bring additional benefits to your business administration processes.
Alternatives to using the SBSCH include:
Outsourcing superannuation payments to your bookkeeper/accountant.
Manually entering data directly into a Super Clearing House of your choice, either paid or unpaid.
Automating superannuation payments through integration with your chosen payroll software. This can be done in a couple of clicks when using Microkeeper (see example below).
Keep reading for the answers to all your SBSCH questions, a breakdown of your alternatives plus a few cheeky gifs.
What is SBSCH?
The SBSCH is an online service created by the Australian Government in order to aid small businesses (19 or fewer employees or with an annual aggregated turnover of less than $10 million) become SuperStream compliant.
Under SuperStream, employers must make super contributions on behalf of their employees as a single electronic payment to a Super Clearing House (SCH) which then distributes the payments to employees individual funds.
Recently the SBSCH has undergone some functional changes. It is now accessed via the ATO Business Portal which combines tax and superannuation services using an AUSkey. It is no longer accessible with a user ID and password authentication.
Further information on these changes can be found on the ATO website.
Limitations of the SBSCH
Many feel the changes have overcomplicated the login process making access cumbersome and adding to an already limited user experience.
Also, the SBSCH employee limit restricts business who plans to expand past the specified 19 employees whether via business growth or a fluctuating demand for services. For example, seasonal industries such as fruit picking or event staff can go from a small team of skeleton staff during the off-season to hundreds of part-time and casuals during the peak season. The SBSCH fails to accommodate this.
What are my options?
For small businesses, there is no need to feel pigeonholed into using the SBSCH. When it comes to processing your superannuation, a one size fits all approach does not always apply.
There are a variety of SBSCH alternatives available in order to best suit your business requirements. Taking into account number of employees, plans for future growth, resources available and existing business administration software and tools.
You can outsource to your bookkeeper/accountant, choose your own Super Clearing House or
...why not automate the whole process!
By using payroll software that integrates into a Super Clearing House, you won't have to manually enter super data. Along with the other added benefits of automating your payroll processes.
Whatever option you go with, it should meet the following requirements:
Meet your Super Guarantee (SG) contributions
Keep a record of payments made
Be Superstream compliant
Quick to process
Outsource your superannuation payments
In the wise words of Homer Simpson ‘Can’t someone else do it?’
Let’s face it, processing super is a big responsibility and the thought of making mistakes is a daunting prospect. Why not leave it to the experts. Talk to your tax or BAS agent as they may provide this as part of their services.
It will save your own time allowing you to spend it on something more worthwhile. (Duffs and Doughnuts?) It will be of minimal added expense if you’re already using their services. Improved accuracy (if not, you may need a new bookkeeper!) Plus when things get hairy they will have the experience to deal with any issues.
Leaving you with less ‘doh!’ And more ‘dough’ for your business.
Keep in mind that this option takes it out of your hands completely, it’s important that you are confident with your chosen professional and their abilities. You don't want to end up like Homer cleaning up a mess at the end of the day.
Do it yourself!
Manually upload to your own Super Clearing House
If the popularity of renovation (ahem, drama) show The Block or retail giant Bunnings Warehouse is anything to go off Aussies love to DIY...and a $1.50 snag.
Why not DSY...or Do Super Yourself.
Granted there may not be as much drama as an episode of The Block and scarcely a sausage in bread. However, when it comes to processing your super this is probably a good thing.
Many super funds give you the option to use their in-built Super Clearing House free of charge provided a certain percentage of your employees are paying into their fund. You may also wish to use it for a fee if you do not meet the fund percentage requirements.
How does it work?
You will manually upload your super data into the super clearing house, from which it will disperse the super payments to each employee's individual funds. The payroll suite used by your business will impact how you upload data.
This is a handy way to process super in one easy transaction however, it does require some commitment to the Super Fund providing the service including creating an employer account, a percentage of employees using the fund or a fee to be paid.
When you drop into your local Bunnings there are always experts (and a few teenagers) on hand ready with professional advice and to answer any questions. The same goes for the Super Clearing House. By using a purpose built Super Fund it’s likely to have a higher level of functionality, user experience and support available. It’s also a good start to leverage any business development/support features that may help your business in other areas.
Take it one step further...
Automate your superannuation processing
Get someone else to do it, do it yourself or renounce humanity altogether and let the robots sort it out. And by robots, we mean Microkeepers fully automated integration from payroll to Super Clearing House.
Let's face it artificial intelligence is taking over anyway so why not make sure it takes over your most tedious tasks.
The most efficient SBSCH alternative by far, why not automate the entire process from payroll to processing super.
This requires using payroll software that includes integration into a Super Clearing House. Microkeeper includes integration into the Super Clearing House SuperChoice, allowing super to be processed after payroll is complete with the click of a button.
How does it work?
After processing payroll, your super contribution data is generated. All you need to do is check it, click ‘approve’ and the data is sent directly to SuperChoice. From which it’s distributed into each employee's respective super funds. A great excuse to grab a quick cuppa. But don’t take too long as the whole process takes no longer than 30 seconds. The fastest way to process super for sure!
This functionality comes at no extra cost and is included in your monthly Microkeeper subscription fee.
To find out how to process your super in a couple of clicks see our video below:
Using payroll software with integration into a super clearing house eliminates manually entering super data along with any complications that coincide with it. The reduction in steps means less room for human error and quicker processing time, not to mention fewer headaches!
Ease of use - a single online transaction, simply pay everything in one go!
Convenient - cloud-based solution available around the clock from anywhere.
Secure - less room for human error.
Time-saving - one payment compared with multiple payments to multiple funds.
Superstream compliant - adheres to governments rules surrounding payments and processes.
Cost effective - It’s free if you’re already using Microkeeper for payroll.
Comprehensive solution - subscription includes roster, timesheet and payroll functionality.
Help is at hand - We know it can get tricky sometimes that’s why we’re available via phone, email or web chat to provide technical support when required.
Depending upon your business requirements there is a range of SBSCH alternatives your business can choose from.
Whether you choose to outsource to your tax/BAS agent, opt for a paid super clearing house or automate the entire process through integration with your payroll software there are multiple additional benefits to be had over defaulting to the SBSCH.
Despite being free, the SBSCH offers a clunky login, inability to accommodate scaling of business size and is subject to changes at the will of the government.
Being proactive in your choice of superannuation processing allows for growth, opportunities for improvement in business processes and the leverage of existing services to gain the best value for your money. All of which will save your business time, money and stress allowing you to focus on what you do best.
Superannuation processing is a crucial and complex area of business administration well worth investing in as mistakes can be frustrating and costly to fix.
When deciding on an SBSCH alternative take into consideration the opportunity to further streamline your processes beyond super processing into rosters, timesheets, payroll and reporting.
If you need a quick, easy way to manage your SuperStream and other reporting requirements with the ATO check out Microkeeper super processing.