If a Superannuation fund receives a contribution with insufficient information to allocate it to a Member account, the fund must, within five business days of receiving the contribution details, notify the Employer about the reason the payment cannot be allocated to the correct Employee. Where an Employee is no longer a Superfund's member or an RSA is no longer held by an Employee, the Superfund or the approved Clearing House must return the payment to the Employer. However, the refund cannot be returned until after the due date of the contribution has passed.
The Employer has then 10 business days to make all reasonable efforts to gather the missing/correct information and attempt to repay the contribution.
It is important to note that when a refund occurs, the payment is not considered made by the Employer and as a result, the Employer may be liable to submit an SG Charge Statement.
Practice Statement Law Administration (General Administration) PS LA 2007/1 (‘PS LA 2007/1 (GA)’) outlines circumstances where the ATO may decide, for administrative reasons, to not raise an assessment of SGC against an Employer, or to allow an Employer's objection to an SGC assessment.
This may be the case where it is clear the Employer took all reasonable steps to comply with their obligations by the due date, such as:

• the Employer sent the payment within sufficient time for the approved Clearing House; Trustee of the Superannuation Fund or RSA to receive the payment within 28 days of the end of the quarter;
• the Employer tried to contribute to the last known Superannuation Fund or RSA belonging to the Employee;
• the Employer could not reasonably have been expected to know that the Employee's benefits were no longer held in that Superannuation Fund or RSA;
• the Employer took reasonable steps to identify a current Superannuation Fund or RSA for the Employee and makes an appropriate contribution to it as soon as practicable.

If your Business pays Superannuation via Xero Auto-Super, Xero will send an email notification to the Superannuation Authoriser outlining the reason why a payment was rejected. Once you have rectified the issue, you have two options to re-process the Superannuation Payment:

1. Raise a Support Case with Xero to make the contribution available for re-processing via Xero Auto-Super 
   OR
2. Repay the Superannuation Contribution via a different Clearing House (i.e. the ATO Superannuation Small Business Clearing House)

Record the payment rejection

The most effective way to record a Superannuation Payment rejection is by posting the refund to a separate liability account called 'Superannuation Bounced Payments' or 'Superannuation rejected Payments'.

è  The Bank Feed Screen

Option 1 - Raise a Support Case with Xero

1. Log into Xero Central/Support and raise a new Support Case
2. When you raise the Support case with Xero make sure you include the following information:
   • Super Accrued Period;
   • Date the Super Batch was Created;
   • Date the Super Batch was processed;
   • Total Batch Payment;
   • Date the payment bounced;
   • Employee Name;
   • Incorrect Superfund name and USI;
   • Bounced Reason;
   • Amount bounced
3. Xero will then re-set the particular contribution back as available for payment
   Note: the total of the original batch payment amount will also reduce by the relevant rejected amount(s).

Option 1 - Reprocess the Superannuation Contribution via Xero Auto-Super

1. Before you can re-process the contribution, make sure the missing or incorrect Employee details have been rectified and the re-instated Super payment is linked to the correct Fund
2. Reprocess the payment via Xero Auto-Super as a separate batch from any other Superannuation Payments

Option 2 - Reprocess the Superannuation Contribution via another Clearing House

1. Reprocess the Super payment via another Clearing House (i.e. the ATO Clearing House) as a separate payment from any other Superannuation Payments

Reconcile the Superannuation Repayment

Once the payment has been reprocessed it should be posted to the Superannuation Bounced Payments liability account where the refund was originally posted.
Note: once you have successfully repaid all rejected Super Payments this account balance should be $0.00

è  The Bank Feed Screen