Are your clients up to speed on Payday Super? They should know the basics already: employers need to make Super payments when they pay wages, and payments need to reach funds in seven business days. But there’s more to the scheme than that. How will contractor payments work? Where do self-managed super funds fit in? What’s the difference between Payday Super and Pay Super? And how will it all work in MYOB?
We’ve answered some of the knottier questions here. It’s a quick cheat sheet to help you support your clients in the lead-up to 1 July.
What is MYOB Pay Super?
Pay Super is MYOB’s ATO-compliant super payment service. Despite the similar name, it’s been around much longer than Payday Super, helping MYOB users automate super contributions for a decade.
Pay Super sits within MYOB Payroll, and it’s included with a subscription. This means your clients already using MYOB don’t need to invest in new software to manage Payday Super rules. Pay Super is also super simple — you or your clients can pay contributions straight from MYOB, with no need to export files, manually enter contributions, or use an external clearing house.
Is MYOB ready for Payday Super changes?
Yes, the Pay Super system is ready to handle new Payday Super rules.
MYOB has already reworked Pay Super to report super contributions through the Single Touch Payroll (STP). As July approaches, we’re fine-tuning and releasing new features to enhance workflows and improve visibility around super payments.
Through it all, we’re working closely with the ATO and industry experts to make sure all changes align with new rules.
Are there any exceptions to the seven-day payment rule?
Yes, there are some exceptions to the expectation that super payments land in employee funds within seven days. If your client is making the first super contribution to a new employee or paying into a new fund, the rules allow up to 20 days to make the super contribution. This gives employers time to validate the fund and employee details.
How do contractors fit into Payday Super?
Payment times have changed, but the rules around who is entitled to Super haven’t. This means entitlements under the Superannuation Guarantee Act still apply. For example, contractors who are paid mainly for labour usually qualify for Super.
If your clients employ contractors, they should:
Set up Pay Super in their MYOB account.
Check whether they are eligible under SG rules.
Pay super contributions along with wages or contractor payments starting from 1 July.
If they use MYOB, set up contractors as ‘employees’ with Employment Basis – Other non-reportable, to automate super payments.
Can you pay into a self-managed super fund (SMSF) through MYOB Pay Super?
Yes, MYOB Pay Super supports SMSF contributions, as long as your clients have entered the fund details correctly and made at least one successful STP transaction.
To make an SMSF payment, your client needs to enter the fund’s ABN (Australian business number), electronic service address (ESA), and bank account details into the employee’s super fund record in MYOB. Once these have been entered, the Super contribution will be included in the next Pay Super batch.
Does Pay Super work the same in AccountRight and MYOB Business?
Not quite. While Pay Super is available across MYOB payroll products, workflows differ slightly.
MYOB Business includes Pay Super in the browser-based payroll workflow.
AccountRight Desktop offers access to Pay Superannuation via the Payroll Command Centre.
How can I set up Pay Super if my client never logs in to MYOB?
If you manage payroll on behalf of clients who don’t use their MYOB accounts, it can seem difficult to get Pay Super set up in time.
The simplest way is:
Get the client to complete Pay Super registration. This only needs to happen once. If your client is struggling to log in or reset their password, talk to MYOB Support.
Once this is done, you should be set up as an Authoriser, with your own login.
From then on, you can create and authorise super payments independently.
Can my practice complete the setup on behalf of clients?
Yes. If you can’t get your client to set up Pay Super, your Partner practice can complete registration on their behalf, with authorisation from the business owner.
We recommend writing up an email template to request client authorisation. By using an email, you create a clear, documented audit trail for client consent.
The email should include:
Confirmation that the client is the business owner and bank signatory.
Authorisation for your practice to set up Pay Super in their MYOB file on their behalf.
A request for a linked bank account for super payments.
Terms and conditions for authorisation, including the fact that a small test deposit will be made to the nominated account to complete setup.
Note: In most cases, the business owner is the bank signatory. We recommend adding the owner as a Pay Super Administrator in MYOB, whether they are completing registration or not.
What do my clients need to know about the SBSCH closing?
The Small Business Superannuation Clearing House (SBSCH) will close for good on 1 July. If any of your clients are still using the service, they’ll need to:
Make their final quarterly payment (April–June) through the SBSCH before 30 June
Or
Find an alternative by 28 July. This is the ATO’s deadline for Q4 payments
Whatever your clients choose, get them registered for MYOB Pay Super now. Even if they don’t use it straight away, it’s better to get it sorted early on.
What can I tell my clients who are concerned about cash flow?
Cash-flow issues are a legitimate concern, but they’re manageable with the right tools and support.
The best advice is to get ahead of it ASAP. You can advise clients to:
Chase outstanding invoices: So they head into July with full coffers.
Consider payment methods: Using online methods via MYOB can help accelerate invoice payments and avoid cash-flow gaps.
Try invoice financing: This helps bridge gaps between completing work and being paid, particularly for clients taking on larger jobs.
Keep track of cash flow: Show your clients how to use their MYOB dashboard, along with cash-flow forecasting and budgeting tools. These give them real-time visibility over incoming and outgoing cash, so they can avoid payday and Super issues
Set your clients up with Pay Super before 1 July
Between the SBSCH closing, Payday Super starting, and EOFY falling in the same week, the next few months are busy. MYOB Pay Super is included in your clients’ payroll subscriptions – getting them set up now means one less thing to deal with in July.
Set up Pay Super for your clients now.
Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.
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