Superannuation compliance in Australia has long been a challenging and intricate aspect of payroll and workforce management. With evolving regulations and a complex industrial relations landscape, employers are exposed to greater reputational and financial risks.  

To address this problem, leaders need to take a proactive approach and explore innovative strategies to enhance their processes from both administrative and strategic standpoints. In this blog, we explore how Artificial Intelligence (AI) is transforming superannuation compliance, focusing on the capabilities of Yellow Canary’s new market-first tool.

Evolving superannuation complexities

From the inception of Australia’s first pension plans in 1857 to the introduction of the Superannuation Guarantee (SG) in 1992, which required employers to contribute a percentage of earnings to a superannuation fund, the system has grown increasingly complex.  

Today, setting up pay codes, managing unique scenarios, interpreting Enterprise Agreements (EAs), and correctly classifying contractors are all complex tasks that commonly lead to underpayments. While a reactive approach to underpayments is crucial for fixing mistakes, adopting a forward-thinking approach is essential to avoid issues such as potential Superannuation Guarantee Charge (SGC) liabilities and negative public perception from arising in the first place.

The impact of AI on superannuation compliance

AI offers a transformative approach to managing superannuation compliance issues. By integrating AI, businesses can process large volumes of data with precision to help them identify and address superannuation compliance issues. For example, AI can identify discrepancies and patterns and early detection of potential compliance issues that existing processes might miss.

When combined with a solid regulatory framework and careful implementation, AI can provide businesses with valuable insights into their compliance status. This ensures that decisions are well-informed, allowing businesses to confidently meet their superannuation obligations moving forward.

Introducing Yellow Canary’s AI-driven Superannuation Compliance tool

With experience in conducting over 100 wage reviews and managing more than $70 billion in wages and entitlements, Yellow Canary understands the importance of identifying compliance issues to ensure ongoing compliance.  

To address the growing complexities of superannuation compliance, Yellow Canary is excited to introduce its AI-powered Superannuation Compliance tool. This market-first solution provides employers with deep insights into the causes of superannuation underpayments to support informed compliance decision-making. It also calculates superannuation guarantee variances and payable charges, simplifies ATO reporting, and supports both historical and ongoing compliance.

How does Yellow Canary’s Superannuation Compliance tool use AI?

By leveraging machine learning and AI capabilities, our platform enables employers to identify patterns and correlations within payroll data, offering actionable insights into the root causes of payment delays.

Here is what can be discovered with our tool:

• Pay code insights: Detect what pay codes contribute to late payments.

• Disbursement insights: Identify pay periods that are driving late payments.

• Employee insights: Find out which employees have the highest late payments.

The analysis allows employers to resolve issues before they escalate. This ensures ongoing compliance and the prevention of repeatable mistakes.  

What else can employers do with the Superannuation Compliance tool?

Identify SG payments and SGC liabilities

With features like the ‘Total Variance’ tile, employers can see the overall difference between what was owed and what was paid, broken down by quarter and employee. The ‘SGC Payable’ tile calculates total liability, including shortfall and fees, providing a clear picture of outstanding obligations. This can be further detailed in quarterly reports and analysed down to the employee level.

Identify and rectify late super payments

Within the dashboard, you can identify calculations for both late payment strategies, allowing you to view the total variance, shortfall, and liability for both the ‘Offset’ and ‘Carry Forward’ methodologies. This enables employers to:

1. Pay the superannuation guarantee variance if the due date for payment has not yet passed.

2. View calculations under both strategies if the payment is late, before submitting to the ATO.

3. See pre-payments for future quarters on the platform if the ‘Carry Forward’ method is selected.

Streamline the ATO process

Employers will not only benefit from crucial superannuation compliance insights but will also be able to simplify the process for administrative teams when submitting SGC statements to the ATO. With just one click, the tool automatically populates a form with data reviewed from the platform, ready for submission. No more data entry or cross checking needed.

Transform how you approach superannuation compliance

With evolving legislation, and the increasing risks of public scrutiny and costs associated with underpayments, businesses must navigate the complexities of superannuation compliance diligently. Underpayment issues frequently reveal broader systemic problems, which Yellow Canary’s AI Superannuation Compliance tool helps to identify. By providing actionable insights into underpayments, the tool enables businesses to address historical and ongoing compliance challenges effectively.

At Yellow Canary, we are committed to challenging how businesses approach compliance and are constantly striving to better assist Australian employers in paying their employees correctly. To discover how our AI-driven tool can transform your superannuation compliance processes, learn more here.  

*Yellow Canary content on this website is intended solely for the purpose of offering commentary and general knowledge. The content is not intended to constitute legal advice. You should seek legal or other professional advice before acting or relying on any of the content.

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