
09 Dec Stapled Super Funds – What Employers Need To Know
As of 1 November 2021, there’s an extra step employers may need to take to comply with the choice of super fund rules. If a new employee doesn’t choose a super fund, most employers will need to request the employees ‘stapled super fund’ details from the ATO to avoid penalties.
A stapled super fund is an existing super account which is linked, or ‘stapled’, to an individual employee so that it follows them as they change jobs.
When a new employee starts, you need to:
- offer eligible employees a choice of super fund
- if your new employee doesn’t choose a super fund you will need to request stapled super fund details using Online services for business.
- pay super contributions, into one of the following:
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- the super fund they choose
- the stapled super fund the ATO provides you if the employee hasn’t chosen a fund
- your default fund (or another fund that meets the choice of fund rules) if you cannot pay into the two above
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Before you can request an employee’s stapled super fund details, you or your authorised representative will need to submit a Tax file number declaration or a Single Touch Payroll event to establish an employment relationship.
Please note: Employers are only permitted to use the service to request stapled super fund details for new employees who started on or after 1 November 2021. The service should not be used to request details for employees engaged prior to 1 November 2021. The ATO is closely monitoring this and employers using the service incorrectly may have their access removed.
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