Inside Small Business magazine has reported that 31 per cent of SME owners say they are unsure of the implications of Payday Super laws, despite the reforms set to commence on July 1. This is according to quoted research sourced from accounting software company, MYOB.
The new regulations require employers to pay superannuation contributions alongside wages, rather than quarterly. While the total amount of superannuation guarantee payable does not change, the shift in timing may require some businesses to review payroll processes and cash flow management.
Inside Small Business quoted Paul Robson, CEO of MYOB, stating that the data shows the small business community is confident overall, with preparation before July remaining a focus.
“It’s encouraging to see that many small businesses expect Payday Super to have little or no impact, and some even see it as a positive change,” he said.
“For those still getting across the details, the most important step is understanding how the timing change affects payroll and cash flow and making any adjustments early.”
Inside Small Business reported that findings from MYOB’s Bi-Annual Business Monitor show that 51 per cent of SMEs expect Payday Super will not affect their operations, while 22 per cent expect a positive impact.
The data suggests some businesses may not have accounted for the operational changes involved, even where they support the reform in principle.
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