Superannuation Guarantee Contributions

Following on from my previous topic, about the different payment types Superconnect Clearing House can handle we must of course talk about the main payment type -- the Superannuation Guarantee Contribution. This is the main payment type that you would handle through the Superconnect system.

Just to review for a moment, the Superannuation Guarantee contribution is a required payment employers must make on behalf of their employees. The aim is to ensure that as many Australians as possible enjoy the benefits of a superannuation income in their retirement.

As you would possibly know, the Superannuation Guarantee is an employer obligation. The contributions are a minimum set down by the Federal Government and must be paid into a complying fund, which is one that meets government standards.

If an employee earns $1,000 a month, your contribution to their super fund each month would be $90.

Ideally, this amount should be paid into your employee's super fund of choice at the same time as they receive their pay. However, this is where a lot of administrative cost comes in -- making payments to different super funds, in some cases one super fund per employee. This is where using Superconnect can save you so much time and money in sending off superannuation contributions.

Visit Superconnect's website to see how you can save money and time in administering payment of the Superannuation Guarantee contributions.

Salary Sacrifice

Last week, I ended the week off by listing the different types of superannuation payments that could be made through the Superconnect Clearing House. One of these was the "salary sacrifice". And I hear you asking, well what is salary sacrifice and when might this be used for my employees.

The best place to go to get the right definitions of this is the Taxation Office website and look under salary sacrifice. Note the menu of items that outlines all the topics that can be listed about salary sacrifice.

Simply put, salary sacrifice is where an employee agrees to forego some of his/her salary to gain a benefit, such as being able to put more away into superannuation. But where the benefit really makes sense for the employee is that you the employer matches the salary sacrifice so that in essence the employee is doubling the benefit. But note, a salary sacrifice cannot be done for past earnings. A salary sacrifice can only be done for current and future earnings.

And as I have already said, the Superconnect Clearing House enables you the employer to make salary sacrifice payments on behalf of your employees through the system. The Superconnect system is the simplest way to make superannuation payments.

What Type of Payments Does Superconnect Clearing House Handle?

I had a person ask me today "What type of payments does the Superconnect Clearing House handle?"

Firstly I must point out that the Superconnect Clearing House is a superannuation payment system. Any type of superannuation payment can be handled. There is the normal superannuation contribution that employers make on behalf of their employess and then there are others as well such as an employee's salary sacrifice payment. 

An employee can also make payments on behalf of her/his spouse to a designated account within the employee's superannuation fund. There is also provision for volunatary payments made to a superannuation fund by the employer or by the employee.

Each of these different types of payments are made seperately within the Superconnect Clearing House so that the receiving fund can make note of what the payments are for and where the amounts should be credited.

There is more about this on our website at the Superconnect Site.

How does the clearing house pay superannuation funds?

One question I have been asked a number of times now relates to how the monies you pay on behalf of your employees are actually paid to the superannuation fund administrators. That is a good question.

For the majority of superannuation contributions, the monies that are deducted from the employers bank are then aggregated in the Superconnect Clearing House and are paid to each Superannuation Fund Administrator electronically. That means Superconnect credits those monies directly to a fund administrator's banking account and then provides electronic advice on what that payment consists. This is true for hundreds of fund administrators and also many hundreds of do-it-yourself funds as well.

For the minority of funds, once the monies are aggregated, Superconnect Clearing House makes payment to these fund administrators by cheque and also provides an advice slip as to what those monies are to be credited. This, we must stress is being phased out as we bring many, many more fund administrators online.

Superconnect can reduce your carbon footprint

Well it had to happen, Carbon Pocket Calculators. Pictured is a Japanese model that allows its user to calulate the carbon footprint you have on the earth. Everything from calculating the result of your trash, to the water you use, and the amount of eletricity and fuel you use.

And in case you were wondering it is solar powered to reduce the total carbon footprint when using the calculator.

Reminds me of all the superannuation calculators on the web, including this genuinely easy to use calculator by Colonial First State. There are many more online that can be found by doing a simple Google search for superannuation calculator.

Point out to your employees some of the interesting and useful calculators online. They are useful in aiding your employees to think more about their superannuation.

Of course don't forget to visit Superconnect where superannuation contribution payments can be simplified for you. Not only can it all be simplified but you can also seriously reduce the carbon footprint you make. Superconnect is all online and reduces the need for using paper to make all those superannuation contributions. You don't even need one of those Cabon Calculators to know that by using Superconnect you can save so much paper and hence reduce your carbon footprint.

Sergey Brin's New Blog

Sergey Brin, one of the founders of Google, today started a new personal blog. His first post was very interesting. He focussed his first post on his predisposition to Parkinson's disease. Evidently it seems to be genetic and thus can run in the family. His mother has always been troubled with the disease. Through a study of inherited genes Sergey is able to predict with some degree of certainty that he will also be inflicted with the disease when he grows older. In his blog he remarks that he has some time to adjust to this situation and that he can prepare well ahead of time in case he does contract the disease.

Of note he remarks, "I feel fortunate to be in this position. Until the fountain of youth is discovered, all of us will have some conditions in our old age only we don't know what they will be. I have a better guess than almost anyone else for what ills may be mine -- and I have decades to prepare for it." Yes, we all will have some condition in our old age. I for one am feeling it now even though I am only in my mid-fifties.

This is one reason why we have superannuation as a compulsory thing here in Australia, to prepare for our old age. Essentially by you ensuring that your employees superannuation contributions are delivered to the correct fund you are helping your employees to be ready for old age.

What better way to aid your employees is there! And to make your life a whole lot easier to ensure that contributions are paid to the correct fund and the correct amounts arrive at that fund than to use Superconnect. Superconnect is the easy way to make contributions -- it is a piece of cake, simple, to make contributions arrive at their correct destination!

A Long-term Commitment

Superannuation is a long-term commitment. For many of us the current stock-market crash is of little consequence to the long-term survival of funds in our superannuation accounts. The stock market does go up as well and we will find that in time our superannuation accounts reflect a much healthier stock market in years to come.

But for others, who are requiring to retire this year or next, the stock market crash has come at a bad time. There are many who will have to stave off retirement and work an extra five or so years until things improve.

None of this should, however, stop us from continuing to store value in our superannuation funds. Maybe we might want to choose to place our current funds in something else than the stock market -- maybe your fund allows you to place value in money markets, or some other site rather than the stock market.

None of this alters the fact that your employer must pay on your behalf superannuation contributions and Superconnect is the best way of your employer doing that. Here in Australia, Superconnect is the most direct way your employer can make contributions on your behalf.

The "Green" Alternative

So it is official now. The Chevrolet Volt has been unveiled and what a car. This is a "green" car that charges on electricity from the mains of your home and goes for 60 kilometers before it starts its own little motor to then recharge the on-board lithium-ion batteries.

This car is a first in the industry introducing lithium-ion batteries that will perform better than other technologies. According to the GM Fast Lane Blog this car represents a rethink in the way cars are manufactured and the way the car relies on batteries rather than a petrol driven motor. Although it does have a petrol motor it is only used to recharge the batteries should a driver want to travel more than 60 kilomoters in one go.

In the same way that the Chevrolet Volt has been hailed as a new and superior car, Superconnect is a product that should be hailed as being the superior and "green" alternative to making superannuation payments. Gone are the days when all your superannuation contributions are all completed on paper. Superconnect is the "green" way to go saving on a huge amount of paper each time superannuation contributions are sent. It is a totally electronic way to forward payments on behalf of each of your employees to their respective superannuation funds.

To really understand what a saving Superconnect can be for your business, go to Superconnect's website and read more, find out how you can really save money and save the environment at the same time.

Search: It is nice to have a service like this

Ten years ago how did we find information? Before Google I can remember search was nowhere as efficient as it is today. Really, how did we get on before Google?

Now we "Google" just about anything. Want to find some new customers? There is nothing like searching to find new customers. Want to buy something, the same, Google it!

I don't know how many times a day I search using Google. It must be more than 24 times a day or sometimes more. Regardless as to whether I am at home, or working elsewhere, I Google so many times to find the right information.

Google is a service that just works. Rarely do we have to move to another search company becuase Google can find what you are looking for. It is nice when we have a service like this.

In the arena of Superannuation Contribution forwarding there is no better service than Superconnect. This is another service that simply just works. No need to go elsewhere because this service is so seamless and direct. It is nice when we have a service like this.

Personal Requirements

We all have our personal problems. Some of us are overweight, others have diabetes, heart problems, near-sightedness, and so the list could go on. It is all a matter of life, the way it presents as we go from childhood to the grave. There is one thing that is sure for all of us and that is we all grow old. That is why we have superannuation, a fund of money that can be there when we are old and in need of income without the need to work.

Today we have a relatively well organised method of adding funds to our superannuation monies. Our employers make contributions on our behalf. We can also add to that by making voluntary additional contributions. There is a complex way in which each of us can make contributions to our superannuation funds.

But employers are faced with a complex web of activity to pay contributions on our behalf. There are different ways that funds can be paid, there is often one superannuation fund for this person and another for the other person.

There is a way to simplify this all for your employers and that is to sign on for Superconnect's superannuation clearing house service. This is the way to do superannuation simply.

If your employer is not using Superconnect, how about suggesting that they look into using Superconnect. It will make sure that your superannuation payments are made and do end up in the right place quickly, efficiently and without a lot of the possible hiccups possible in manually forwarding superannuation monies.

What Will They Think of Next?

I have heard about nearly everything being spread on toast, vegemite, honey, jam, and the rest even cheese. What about burning the news on toast? Yes, someone has invented a toasting gadget to connect to the Internet, load the news and burn a couple of stories onto a slice of bread to make it into toast. Makes you wonder what will be invented next!

Well, there is no need to invent anything more to make sure superannuation payment goes quickly and smoothly because we have got Superconnect to do that. Superconnect can save you time, money and effort in superannaution payment.

All you need to do is to go and register on the superconnect site and within 2 to 3 days you can be saving yourself such a lot of time, effort and money.

So when you are having toast next time think about the time saving you could be having in reading your toast before devouring it. You will have a much quieter and civil breakfast when you know that you can save so much time at work using Superconnect.

Training Costs: Evil Necessity

I think you would agree with me that training in your organization is a cost that seems to go nowhere. It is as one might say "An evil necessity." But why is training a necessity?

It seems that business activity these days is rather a complex set of behaviours. There are all manner of complex things these days. Just using a computer in your organization is set up so that your company can do business in its own particular way. In the accounting department you have all manner of complex things to do.

Perhaps one of the most complex things you do is pay superannuation contributions on behalf of your employees. With the fact that each employee can now choose her/his own superannuation fund, it all becomes so complex that it can take up a huge amount of time. And if you have to hand over the payment of superannuation contributions to another staff member the amount of time to train the other person to complete contribution payments is a huge time sink.

The fact is paying superannuation contributions need not be such a time sink. You could subscribe to Superconnect and simplify all this. In fact, once you use superconnect handing over to someone else will be easy. No training time needed it is that simple. So, I urge you, to simplify the way you do things you need to Superconnect your superannuation contributions. You will be able to reduce one of those complexities in your business activity.

Superconnect Your Super

We would like to think that the Superconnect Clearing House is the place for all employers to make Superannuation contributions easy. And we are receiving confirmation of that fact as employers discover us and find how easy it is to make superannuation contributions through us.

Today I was talking to a couple of employers with 100 or so employees each. The discussion introducing Superconnect usually takes about 5 minutes and then the penny drops. One of the people on the end of the phone exclaimed, "Oh that is so easy compared with what I do at the moment. Where do I get started?"

The other person I was speaking to said something similar but added, "I wish I knew about this ages ago. You wouldn't believe how many letters and envelopes I have to use to pay superannuation each month. We have 100 employees or thereabout and I have to make up 80 letters, fill out forms, and send out 90 envelopes and a cheque goes with each."

Yes, I agree. Paying Superannuation contributions through Superconnect makes it all much easier. Just extract data from your payroll system or submit a spreadsheet, check online to see that everything is OK, and press the button and superannuation contributions are done.

You can find out everything about making your contributions through Superconnect by following this link.

Superconnect and the new world of "Chrome"

So a new browser was borne yesterday. Google unleashed its new browser that it calls "Chrome". And what a descent little browser it is. It makes the world of browsing seem to simple . . . a version of what it used to feel like browsing before all the bloatware. And what speed it loads each page. Chrome makes the browser sink into insignificance, letting each page be the center of attention instead of the slowness of the browser to load.

Well, what has Chrome got to do with Superconnect. Trying out Chrome on all the sites I use I was surprised to see just how sophisticated the Superconnect site seemed in browsing it with Chrome. Boy do I like what I see with Chrome!! And as I am on Superconnect quite frequently, testing new little enhancements, trying to break the system or whatever my task may be, I am enjoying the new found freedom offered by Chrome . . . freedom from waiting for the next page.

To put it another way, Superconnect just absolutely sings when using Chrome. Must be the new browser! I recommend you do two things . . . download Chrome and secondly start using Superconnect for your superannuation payments. The two work fantastically together.

What if we don't generate a payroll file?

Here is the question you are asking: Can we use Superconnect if we don't generate a payroll file?

Most definitely you can use Superconnect if you do not generate a payroll file of some sort. Superconnect has, as a second option, a web interface where all the data needed to make superannuation contributions can be collected, collated and stored prior to and after making a contribution run.

All you need to use the web interface is a computer connected to the Internet running a common browser, such as Microsoft Internet Explorer or Firefox. You will still need to register which requires you to visit the Superconnect site, complete some online forms and send in a hard copy of your sign-up along with a signature.

Or if you wish, you can use Superconnect another way. Instead of using the online web form, you could amass all information required to make superannuation contributions on behalf of your employees by inputting all the required data in a spreadsheet. As part of the sign-up process you can forward that spreadsheet to Superconnect staff who will arrange your sign-on so that it will accept all the data necesssary in the order that you supplied.

There are at least two ways you, as employer, can forward data to Superconnect to automate your superannuation contribution payments.

Who is Superconnect?

Perhaps you have just found this blog and are wondering who on earth Superconnect is! Wonder no longer, I will tell you.

Superconnect is a business that was started in 1996 to provide superannuation solutions for businesses within Australia. Our company is wholly Australian owned and operated and is operated in the State of New South Wales. Superconnect solutions are available to be used by employers right across Australia, superannuation fund administrators, payroll bureaus and others who are compelled by law to make superannuation payments on behalf of staff under employ.

With our experienced team, meticulous processes and practical approach, we integrate technology with our knowledge of the Australian superannuation industry to provide accurate and effective web-based solutions.

If you are an employer and wish to use Superconnect as a means to effect superannuation contributions then you should register and begin using Superconnect. Registering with Superconnect is free. Once you register you can see exactly how Superconnect saves you money, time and effort in making Superannaution contributions.

Go ahead and register now.

Using Superconnect: Do-it-Yourself Funds

Since employees have had a choice of Superannuation Fund to which they contribute, there has been an explosion of Do-it-yourself (DIY) Funds. Essentially anyone can establish a DIY Fund. All that is needed to open a DIY Fund is to purchase the correct documentation from a company selling DIY Funds, have your lawyer do all the legal paperwork and have your accountant do his part.

What seems to be happening is that over time employees are exercising their right to choose which fund they contribute to, and often the choice is to set up a DIY Fund. This is creating, however, a huge administrative tangle of activity one each month for employers. Logically it would be possible for an employer to have to manually send contributions to as many funds as there are employees. So if you have 500 employees you could be sending contributions to 500 Fund administrators.

This is where Superconnect Clearing House comes into its own. All you need to do is to amass all the data in your payroll system, such as the employees' choice of fund, etc., and then Superconnect does the rest. No longer do you have to forward contributions, write cheques, complete forms. Superconnect does it all, even to DIY Funds.

In fact, Superconnect prides itself on the fact that it can pay out to thousands of DIY Funds now and even more in the future. When Superconnect Clearing House is asked to pay to a DIY Fund and the DIY Fund is not listed in its register of legal Superannuation Funds, Superconnect establishes communication with the DIY Fund and verifies that the DIY Fund is a legal Superannuation Fund and can receive contributions on behalf of its owner.

So solve your increasing administrative load by using Superconnect Clearing House to get all those contributions flowing in the right direction with little to no hassle.