Xero has recently announced that it will introduce a new safety measure for automatic superannuation (auto super) payments within Xero Payroll. This will see Xero users (both old and new) having to connect an active bank feed (one that automatically imports transactions from your bank or financial institution directly into your Xero organisation).
This will work to add an extra layer of cyber protection to help keep your Xero account secure.
If you are not familiar with Xero’s auto super payments, it enables superannuation payments from a registered bank account to an employee’s nominated fund through a third party clearing house – all in just a few clicks.
This is Xero’s solution to be SuperStream (the way businesses must pay employee superannuation guarantee contributions to super funds. With SuperStream, money and data are sent electronically in a standard format) compliant.
So what exactly will you need to do?
If you are a new Xero user, establishing a bank feed (from the bank account you’ll use to direct debit auto super payments from) will become a mandatory requirement to register and process payments.
For Xero customers currently using auto super, you’ll need to ensure an active bank feed is connected to the bank account you’re currently using to process auto super payments upon re-registering or updating your registration details.
Even though current users will not have to make these changes immediately, it is recommended that you do ASAP as it can take 10 business days to set up a bank feed, and you don’t want to be delayed.
