There’s a change coming soon that means to comply with ‘choice of fund’ rules you might need to do something extra when a new employee starts to work for you.
Currently, if a new employee doesn’t choose their own super fund, you can pay super contributions for them to your default fund.
From 1 November, if you have new employees start and they don’t choose a specific super fund, you may need to request their ‘stapled super fund’ details from us.
A stapled super fund is an existing account which is linked, or ‘stapled’ to an individual employee, so it follows them as they change jobs. This change aims to reduce the number of additional super accounts opened each time they start a new job.
You’ll be able to request stapled super fund details for new employees using Online services for business.
To get ready for this change, you can check and update the access levels of your business’ authorised representatives in Online services. This will mean you’re ready to request stapled super funds if needed. It will also protect your employees’ personal information.
This information has been taken straight out of the ATO Small Business Newsroom. The full article can be found here.
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