Stapled super fund – what you need to know
What in fact is a ‘stapled super fund’? Well, as of 1 November 2021, employers can request existing superannuation account details for new employees from the ATO. This is what is called a ‘stapled super fund’.
Basically, a it’s an existing account that’s been linked or ‘stapled’ to an individual. This means the account will follow the employee from job to job.
The aim is to reduce account fees and multiple super accounts being opened when an employee starts a new job.
What to do when a new employee starts work
When a new employee starts here are the steps the employer needs to take.
Firstly, employers need to offer the new employee a choice of superannuation fund, if they are eligible to choose.
Secondly, employers must request the employees stapled super fund from the ATO if they don’t choose a fund.
NOTE: this includes employees who aren’t eligible to choose a fund. For example, temporary residents and employees covered by an enterprise agreement or workplace determination made before 1 January 2021.
Employers then pay superannuation contributions via:
- the super fund the employee chooses
- the stapled super fund provided by the ATO
- your business’s default fund (or another that meets the ‘choice of fund’ rules) if unable to pay into either of the above.
When an employee informs an employer of their choice of super fund, the employer has two months to start paying contributions to that fund.
Before requesting a new employee’s super fund details remember
Before employers can request an employee’s existing fund details, they must submit a tax file number declaration or a single touch payroll event to establish an employment relationship.
Also employers should to check the status of ATO online services and Access Manager permissions.
For more information about how and when employers can request an employee’s super fund details via the ATO click here.
As always if you have questions specific to your business contact the friendly CVW Accounting team on 9219 1300.