Super Guarantee – Employee Stapled Super Funds
Employers will soon be required to undertake an extra step in the super guarantee (SG) process if new employees have not provided them with their super membership details.
Currently, employers must pay SG contributions to their employer-nominated fund (default fund) by the due date where employees have not provided details of their own ‘choice’ super fund.
From 1 November 2021, where new employees have not advised their employer of their chosen super fund, employers will need to request an employee’s ‘stapled super fund’ details from the ATO first.
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.
If the employee has a stapled super fund, the employer must make the SG contribution to this super fund (instead of the employer’s default super fund).
This change should limit the number of super accounts held by individuals and therefore reduce some of the administration fees associated with having multiple super accounts.
New Process for Nominating Employee Super Funds
From 1 November 2021, SG payments must be paid to super funds in the following order of preference:
- The employee’s chosen super fund; or
- The employee’s stapled super fund (only if no choice has been made); or
- The employer’s default super fund (only if no choice has been made and the employee has no stapled fund)
How to Request an Employee’s Stapled Super Fund Details
Employers will be required confirm if their new employee has an existing super fund via the ATO’s ‘Online services for business’ (which recently replaced the ATO Business Portal) via the Employees > ‘Employee super accounts’ menu.
In order to confirm an employee’s existing super membership details a Tax File Number (TFN) declaration or Single Touch Payroll (STP) event needs to have been submitted to the ATO to advise them of the employee/employer relationship.
The employee’s details can then be entered and the employee stapled super fund details will be provided on-screen instantly if one such fund exists.
In preparation for this change, we recommend all business owners who employ staff confirm they and their authorised representatives can access ‘Online services for business’ via the website here: www.onlineservices.ato.gov.au/business.
As a registered tax agent AMG Accountants + Advisors also has the ability to check these details on behalf of our clients’ employees also.
No Super Membership Details
In order to comply with SG obligations, if the employee does not advise an employer of their chosen super fund and has no stapled fund (e.g. an 18 year old starting their first job), the onus is on the employer to make the SG payment to an account with their default super fund.
Setting up new super accounts with the employer default fund can be a tedious process so we welcome the change which should give employer’s the ability to find out an employee’s super membership details without having to chase the employee (who may have left) or waste time on the phone setting them up with a new super account.
Feel free to contact our office for further details about the new stapled super fund process or if you are having difficulties accessing the ‘Online services for business’.
You can also visit the ATO website for more information about the changes.