Superannuation contribution payments used to be time consuming and often result in higher administration costs. With the introduction of superannuation clearing house, the process is now very simple. All it requires is a single payment to Medicare.
Medicare will then transfer the funds to your employees super accounts registered on its system. The best thing about the service is that it is free to small businesses employed less than 20 employees. Please click here for more information about free superannuation payment service provided to small businesses.
Type of payment by employer Contribution is made when
Cash Cash is received by superannuation provider
Electronic fund transfer Money is received by the provider
Bank cheque or money order Bank cheque or money order is received
Personal cheque Personal cheque is received and is cleared within a few business days
Promissory note Promissory note is received and is cleared within a few business days
*Note: under certain circumstances when a promissory note is acquired at a discount, the transfer of the note under such circumstances is considered to be a transfer of an asset, which may result in a breach of the law.