The ATO is reminding employers that, as of 1 November 2021, there is an extra step they may need to take to comply with the choice of super fund rules.
If a new employee does not choose a super fund, most employers will need to request the employee’s ‘stapled super fund’ details from the ATO to avoid penalties.
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.
When a new employee starts, employers need to:
– the super fund they choose;
– the stapled super fund the ATO provides if they have not chosen a fund; or
– the employer’s default fund (or another fund that meets the choice of fund rules) if the employer cannot pay into the two above.
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