Say Goodbye to Super Stress

Richwood Accountants
2 days ago
4 min read

Automating Super Payments with Xero and MYOB

For small business owners in Australia, managing super contributions for employees can be one of the more complex and time-consuming tasks. However, thanks to advancements in accounting software such as Xero and MYOB, paying super can be streamlined and automated, ensuring compliance and reducing the risk of errors. The upcoming Payday Super proposal, which requires employers to pay superannuation at the same time as wages (rather than quarterly), will add another layer of complexity to the process. Although the legislation hasn’t been passed yet, if it is, this new rule is set to kick in in 2026, so now is the perfect time to get ahead of the game and ensure you’re prepared for more frequent payments and tighter deadlines. This makes using reliable accounting software even more essential for simplifying superannuation management.

In this article, we’ll explore how businesses can use MYOB and Xero to efficiently pay superannuation contributions, saving time and effort while staying compliant with Australian regulations.

Understanding Superannuation in Australia

Superannuation is a mandatory retirement savings system in Australia where employers must contribute a percentage of an employee's earnings to a super fund. The Superannuation Guarantee (SG) rate is currently set at 12% as of 1 July 2025. Employers need to ensure that super is paid correctly and on time to avoid penalties and interest from the Australian Taxation Office (ATO). To dive deeper, feel free to check out our previous article here.

The Role of Accounting Software in Paying Super

Accounting software like MYOB and Xero makes paying super more straightforward by automating much of the process. Here’s how it works:

Tracking Employee Super Contributions
Both MYOB and Xero can track employee earnings and calculate the correct superannuation amount. By entering each employee’s details, such as salary or hourly rate, and setting up their super fund details, the software will automatically calculate the super based on current legislation.
Superannuation Clearing House (SCH) Integration
Both MYOB and Xero offer seamless integration with a Superannuation Clearing House (SCH), an intermediary service that consolidates super payments for multiple employees and distributes them to the appropriate super funds. By using a clearing house, businesses can streamline the process by making one payment for all employees, rather than paying each super fund individually.

Xero has its own built-in clearing house feature. When you’re ready to make a super payment, simply select the super payments you want to process, submit them for approval and approve them – Xero handles the rest! It takes the funds from the bank account you’ve nominated, and submits them to the relevant superfunds automatically. Easy peasy! For more information, read Xero’s article here.

MYOB integrates with SuperStream. Similar to Xero, when you’re ready to make a super payment, just select the super you’d like to pay, choose the bank account and payment date, and record and authorise the payment. MYOB will handle the rest – making sure it goes to the right superfund in the right format! For more information, read MYOB’s article here.
Automated Payment Reminders
Both MYOB and Xero will send automated reminders about upcoming superannuation payments, ensuring you never miss a payment. They also track when payments have been made, so you can easily keep tabs on what has been paid and when.
Superannuation Compliance
These software tools are designed to ensure compliance with ATO regulations. They follow the current SG rate and ensure that contributions are made on time. In addition, they help businesses meet the requirements of the SuperStream system, which requires employers to make electronic contributions to super funds.

Benefits of Paying Super Through Accounting Software

Saves Time and Reduces Errors:
Manual calculations and payments of super can lead to mistakes (and headaches). Accounting software automates these processes, reducing the chance of errors and saving you loads of time.
Improved Compliance:
By using MYOB or Xero, businesses can be confident that their super contributions are compliant with the ATO’s requirements. Both platforms are regularly updated to reflect changes in legislation, helping businesses avoid penalties.
Increased Efficiency:
Instead of processing multiple payments for different super funds, the clearing house integration allows businesses to make one consolidated payment for all employees. This simplifies the process and saves administrative effort.
Access to Detailed Reporting:
Both MYOB and Xero provide detailed reports on superannuation contributions, making it easy to track payments and verify compliance.
Reduced Risk of Late Payments:
Automated reminders and notifications reduce the chances of missing deadlines for super payments, avoiding late fees and penalties.

Final Thoughts

Paying super through accounting software like MYOB or Xero is a smart move for small business owners who want to streamline their payroll processes, stay compliant with Australian superannuation laws, and save valuable time. These tools automate the entire process from calculation to payment, providing peace of mind and allowing business owners to focus on what they do best—running their businesses.

Whether you’re new to superannuation or looking to optimize your current processes, MYOB and Xero offer powerful solutions to manage your superannuation payments efficiently and accurately.