Under Payday Super, contributions must be received by an employee’s super fund within seven business days after payday.

To keep on track, the ATO recommends that employers:

• use the new member verification request (‘MVR’) to verify that an employee’s super fund details are valid and that the fund can accept a contribution before it is made;
• check with the relevant payroll provider or clearing house that the fund is responding to MVRs;
• monitor payments, as funds have three business days to allocate or reject a payment; and
• if a payment is rejected or returned, act quickly to correct any errors and resubmit to the correct fund.

For new employees, or where an employee changes their fund, employers generally have 20 business days to make the initial contribution.

Editor: The ATO has stated that employers who genuinely try to comply will not be the focus of its compliance action during the first year of Payday Super.