Forum Discussion

Trusted Cover User

1 year ago

Solved

why does myob pay super take so long

I have started processing Super through Myob as a trial, after using ATO Super clearing house for many years. I only processed one company's supers through MYOB, the other companies I work for, I continued using ATO Clearing house.

I processed these all on the same day, and whilst the ATO Clearing house has already paid out the super to the corresponding employees, MYOB Pay Super is nowhere to be seen. The amount came out of the bank a/c 5 days ago!

Going forward, how often is this lag in payment going to happen? What happens when we have to start paying super every payroll period as per the new tax laws??

Mike_MYOB
1 month ago
Hi all, there are some questions and concerns on this thread that I want to help clarify. Sorry that this hasnt been clear before now.

Regarding the length of time to process - who is involved in the process? Why does it take so long? (is MYOB trying to get money from interest on these funds)?

To be clear, MYOB does not receive any funds or payments in this process. The clearing house debits the payment, and then sends the payment to the funds.

One of the reasons that you see things take time today, is that the funds have a 20 day window to allocate payments, but this is reducing to 3 days come the 1st July

Who is responsible if the payment is not in the employees fund within 7 days?

The legislation is written that it is the employers obligation to make sure super reaches the employees fund within 7 days.
BUT
This doesn't mean that you are on the hook for every step in the chain.

Practically speaking, if an employer authorises the super payment on payday before the 4pm AET direct debit cut-off, standard processing is:

3–5 business days through the clearing house.

Add the fund's 3-day allocation window on top

And you're comfortably inside 7 business days as long as you're submitting on or close to payday. The risk for our customers (Employers) is when there are delays in authorising the payment.

Its important to note 2 more things here.

This is an industry-wide change. Funds, clearing houses and software providers (MYOB) are all adjusting to faster timing, and processing times are expected to improve across the ecosystem from end-to-end, not just at MYOB.

The ATO has advised that employers making a genuine effort and resolving issues promptly aren't the focus of compliance action in the first year. Its important to remember that there's room to settle into the new rhythm, and the ATO has explicitly said delays caused by issues outside the employer's control (clearing house, fund processing) will be treated reasonably where the employer has done the right thing.

49 Replies

BOARD
Member
2 days ago
I've just done some research. There are alternatives. Apparently you can still use clearing houses that are compliant with payday super, outside of MYOB, just not the Small Business Superannuation Clearing House (SBSCH).
Mike_MYOB
Community Manager
2 days ago
Hi BOARD , this is true, customers can use alternative providers.
I would also encourage you to read this update I posted today, or a response from one of our product managers here
SSW1
Member
2 days ago
I chose to use a separate clearing house as I had read all these issues leading up to it. I use the Australian Super new employer portal. MYOB doesn't supply a supported report so you just have a template and enter the super amounts and load to the clearing house. I make the payment that day and have found it can be in my own super fund within a few days. Good Luck!
BOARD
Member
2 days ago
Thanks I have read this and as I said I have done my research, at least I know there is an alternative if MYOB does not get itself sorted, and the not being able to back up locally is also another factor which is something else I need to research with other software programs and advise our managers.
Stillonhold
Experienced Cover User
2 days ago
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Stillonhold
Experienced Cover User
2 days ago
Absolutely agree, Jenni. MYOB isn't going to fix this. All we getting are mods with unacceptable excuses.
Stillonhold
Experienced Cover User
2 days ago
Mike_MYOB This whole process requires an external auditor. We've all been using clearing houses for years, and MYOB is the only one that takes this unacceptable delay in funds transfer.

The issue isn't that we don't understand what's happening. The issue is that the company does, and apparently keeps choosing not to address it. No amount of polished, patronising reassurance from mods changes that.
DebS_5
Experienced User
2 days ago
Hi Mike, I have paid Super both from MYOB and Xero for Clients and the MYOB is taking 7 days before it is saying paid and Xero is showing 5 days, apparently it is the clearing house, is there anything that can be done about this, as it does not leave time for corrections if a Super Fund is rejected ie Employee changing fund/s and not notifying us. and Xero shows Submission Date, Approved Date and Paid Date where as MYOB only shows Submission Date. Is there a report to get the rest of the information ie Approved and Paid Dates also. Thank You Deb
Mike_MYOB
Community Manager
2 days ago
Hi DebS_5

Thanks for raising this, the difference here is really in how the two products present the payment journey.

You mention that Xero shows separate milestone dates like Submission Date, Approved Date and Paid Date.
MYOB handles this a bit differently by showing the payment’s progress through statuses instead.
So rather than listing each milestone as a date field, MYOB shows whether the payment is:

Pending Authorisation

Partially Authorised

Processing Payment

Funds Requested

Completed.

The main status to look for is Completed, as that confirms the super payment has been successfully processed and sent to the employee’s super fund. Before that, it’s normal for a batch to sit in an in-progress status for several business days while the payment is moving through authorisation, bank withdrawal and clearing.