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All About Stapled Super Funds For Employers

All About Stapled Super Funds For Employers

An existing super account linked with an individual employee that follows them as they change jobs is called stapled super fund. This avoids the use of opening a new super account every time an employee starts a new job and also reduces the account fees. Those who don’t meet the choice of super fund obligations may have to face additional penalties.

Request For Stapled Super Fund Details

Stapled super fund details for new employees who are starting their job on or after 1st November 2021 needs to be requested, when:

  • an employer needs to make a super guarantee payment for an employee.
  • employees are eligible to choose a super fund, but they don’t.

Also, stapled super fund details may be requested when employees aren’t eligible to choose their own super fund. This includes employees that are:

  • temporary residents.
  • covered by a workplace determination or enterprise agreement made before 1st January 2021.

For employees that started working for an employer on or after 1st November 2021 but haven’t provided their choice of super fund, an employer should make contributions into:

  • the employee’s stapled super fund
  • your employer nominated account

Steps To Request Stapled Super Fund Details

Using the ATO online services, you can request stapled super fund details from the Australian Taxation Office. But make sure you have offered all eligible employees a choice of super fund. Before getting the fund details as requested by an employer, ATO needs to confirm that an employment relationship exists. The steps involved in the process are:

  • Offer Your Employees A Choice Of Super Fund
  • Check ATO Online Services
  • Access Manager Permissions
  • Establish An Employment Relationship
  • Request Stapled Super Fund Details In ATO Online Services
  • Make A Bulk Request

What To Do If You Are Late In Making A Request

ATO takes the responsibility of helping and supporting employers in the first instance as this change is introduced. An employer may have to pay the choice shortfall penalty if a contribution is made to a default fund without making a stapled super fund request.

To avoid the choice shortfall penalty, make sure:

  • you request the stapled super fund details for your employee as soon as possible
  • you pay the employee’s full super guarantee contribution to the stapled super fund
  • pay the contribution to the stapled super fund by the quarterly due date.

To know more about stapled super funds and the steps involved in requesting the detail, feel free to consult our tax accountants at KPG Taxation.