Accurate payroll data will be critical for foreign-owned small businesses as Payday Super requires contributions to reach employees’ super funds within seven business days of payday.
The Australian Taxation Office (ATO) has urged employers to keep payroll information accurate and up to date to reduce errors, prevent rejected contributions and support timely super payments under Payday Super.
For foreign-owned small businesses operating in Australia, maintaining accurate employee records is particularly important when payroll is managed across different systems or with external providers. Employers should check employee names, dates of birth, tax file numbers (TFNs) and super account details before processing payroll. The ATO said common errors, including invalid TFNs, incorrect dates of birth and generic information entered into employee records, can delay the matching and allocation of super contributions.
Employers can also use a Member Verification Request (MVR) to confirm an employee’s super fund details before making a first payment, when employee information changes or after a payment has been rejected. However, businesses should first confirm that their payroll provider or clearing house can process MVRs.
Where an error occurs, employers should review the message from their provider, verify the employee’s details and correct any inaccurate or incomplete information before resubmitting the payment. The ATO said resolving these data issues can generally prevent contributions from being rejected or returned.
Ro Elvinia
Content & Marketing Coordinator