The introduction of “stapled super” has been effective from 1 November 2021. And many employers around the country – from Perth to Melbourne – are not yet fully across their new obligations.
What is stapled super?
The government has now introduced “Stapled super” which is an attempt to stop employee’s holding multiple superannuation funds with every change of job. In effect the employees default fund will become their existing fund.
How to deal with stapled super
Step 1 – Provide your employee with a Superannuation Standard Choice Form
When an employee starts work offer them a standard super choice form. If they nominate a superannuation fund pay their superannuation into that account.
Step 2 – Access online services for business
If your employee does not nominate a fund, access Online Services for Business. Online Services for Business requires that you have a MyGovID through Relationship Authorisation Manager (RAM).
Once you have the employees Tax File Number you can request details of the employees stapled superannuation fund details. That is, enter your employee details and you will find out who their stapled super fund is and its details.
If you do not have the employees tax file number on hand (for whatever reason) you can also access the stapled super fund details once you have recorded a Single Touch Payroll event.
The simplest way to deal with the TFN notification requirements is for the employee to complete a “New Employee Commencement” form in the ATO Online account. Alternatively the employee can provide you with a paper copy form.
Alternatively, the team at Westcourt can also do this – and we regularly do that for clients we process payroll.
Step 3 – Pay the super
If you have details of the employees stapled super fund you must pay their employees superannuation guarantee contributions into their stapled fund.
If your employee does not have a stapled fund you can pay the contribution to your default employer fund.
Dealing with contractors
Contractors who are operating as natural people and mainly providing labour are also eligible for super guarantee levy contributions. So for these people, who are not yet included in STP reporting, you need to demonstrate an employment link with the contractor and yourself in the ATO system.
The easiest way to demonstrate an employment link with contractors is to do so using the secure mail function within the ATO Online Services (Portal). This will include sending the contractor name, contractor date of birth, contractor ABN and the business address of the contractor.
Getting it wrong
The ATO have an official policy of assisting employers who make legitimate mistakes with stapled superannuation. This does not necessarily mean an employer will be exempt from the superannuation guarantee charge if you get it wrong – but you should attempt to identify the correct stapled super fund as quickly as possible and contribute all further monies into the stapled super fund.
If you have not paid your SGL obligations within 28 days of the end of the quarter you will still have to lodge a super guarantee charge form and the resultant penalties.
The ever-increasing payroll and super obligations on employers is making the process of payroll fraught with danger. At Westcourt we can provide complete HR compliance and advisory services including preparation, advice and support to employers to make sure you are compliant and your payroll tax and super reporting are integrated into your other tax reporting obligations – from state taxes to BAS through to the annual statutory income tax returns.