Coming soon from the ATO, a plan to help reduce superannuation account fees.
What's the one thing that usually gets forgotten when you have a new employee start?
From what I see, it's usually following up with the employee when they don't return their Super Nomination form... And then you, as an employer, don't have any super details... and you start falling behind on their super payments.
Did you know that if you are just 1 day late in lodging & paying your super, you should make a declaration to the ATO for them to take on the management & sort out getting the funds to the employee? These forms are tedious and can come with penalties and fines.
Wouldn't it just be easier to look up the employee on a database and find their superannuation details? You know, the super fund that has followed them around so far?
Well from 1 November if an employee doesn't provide the employer with superannuation details you can request the employees stapled super fund from the ATO. A stapled super fund is an existing super account of an employee that follows them as they change jobs. This means there should be no excuses for unpaid super.
The main aim of the ATO is to reduce account fees by stopping new super accounts from being opened every time an employee starts a new job. But I think the exciting thing with this change is that it will be wayyyyyy easier to get an employees superannuation deets & make sure you're paying on time!
What do ya'll think? Is this a good idea or more work for you?
How to request your employee's stapled super fund details
Step 1: Offer your eligible employees a choice of super fund
You need to give your eligible new employees a Super standard choice form and pay their super into the account they tell you on the form. Most employees are eligible to choose what fund their super goes into.There is no change to this step of your super obligations.
Step 2: Request stapled super fund details
If your employee doesn’t choose a super fund, you may need to log into our Online services and go to ‘Employee Super Accounts’ to request their stapled super fund details. Your agent or other tax professional can do this for you.We will provide your employee’s stapled super fund details after we have confirmed that you are their employer.If we provide a stapled super fund result for your employee, you must pay your employee’s super using the stapled super fund details we provide you.
Step 3: Pay super into a default fund
You can pay into a default fund, or another fund that meets the choice of fund obligations if your employee doesn’t choose a super fund, and we have advised you that they don’t have a stapled super fund.