If you're in business and taking on some new employees for the first time, you may know that you need to account for their superannuation. Yet you may need to find out if they already have a "super" account elsewhere and may have amassed funds within that account instead. What do you need to know about this so-called "stapled" fund?
Following the Employee
The term "stapled" refers to a superannuation fund that is meant to follow the person throughout their earnings career. So in principle, an employee should only have one super fund registered with the ATO, and you may need to access some of those details in order to process accounts correctly. You are required to search and use the stapled fund so that the employee does not end up with several super funds throughout their working career.
Searching for Previous Accounts
If you take on a new employee and they don't automatically nominate a fund by using the standard choice form, you should not automatically create a brand-new account for them. Instead, you should search through the online services department of the ATO to look for the stapled fund. Most employees will already have one unless they are brand new to the market and have not previously been eligible for superannuation.
On-Boarding Process
As soon as the employee comes on board, you need to offer them a choice of super funds through the standard choice form but if they do not nominate a choice, look for the stapled fund. You need the employee's details, including their tax file number, full name, date of birth and address. Once the system finds the stapled fund, it will provide you with the details and also notify the employee that a request has been made on their behalf.
Making Future Payments
From this point on, you will need to pay super fund contributions into that stapled account. However, if the system does not find a stapled fund, you can pay the money into your default fund or a separate fund that meets the relevant rules.
How to Get This Right
Employers must conform to the superannuation rules carefully, and the process can sometimes be challenging to understand. This is why it's a good idea to engage the services of an accountant if you do not already have one. This expert will know the rules inside out and do the necessary work for you so that you can concentrate on other matters.
Contact an accounting service for more information.
Share21 July 2022
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