How to Deal with Stapled Super

The introduction of stapled super funds by the Australian Taxation Office (ATO) in 2021 was a significant shift in how superannuation accounts are managed. As we move through 2024, understanding and efficiently managing stapled super remains crucial for employers. Here's an updated guide to help you navigate these changes and ensure compliance.

Step 1: Understand Stapled Superannuation

Stapled superannuation was introduced to prevent employees from accumulating multiple super accounts when they change jobs. A stapled super fund is an existing super account that follows an employee as they move from job to job. As an employer, it's your responsibility to check with the ATO if a new employee has a stapled super fund before opening a new account for them.

Key Points to Remember in 2024

• ATO Portal: Use the ATO online services to identify stapled super funds for new employees.
• Compliance: Ensure you comply with the obligation to provide superannuation contributions to the stapled fund unless the employee chooses a different fund.
• Penalties: Non-compliance can result in significant penalties, so it-s essential to stay updated on your responsibilities.

Step 2: Integrate Stapled Super Checks into your Onboarding Process

Integrating stapled super checks into your onboarding process is essential to ensure a smooth transition for new employees. Here's how to do it:

• Employee Details: Collect all necessary employee details during onboarding, including their Tax File Number (TFN) and consent to check for a stapled super fund.
• ATO Requests: Submit a request to the ATO for stapled super information as soon as you receive an employee's TFN.
• Document Findings: Document the stapled super fund details provided by the ATO or confirm the employee's chosen fund.

Pro Tips for 2024:

• Automation: Use payroll software like Microkeeper to automate the stapled super fund request process, saving time and reducing errors.
• Employee Communication: Clearly communicate with new hires about the stapled super process to avoid confusion and ensure they understand their options.

Step 3: Manage Contributions Effectively

Once you've identified an employee's stapled super fund, it's crucial to manage contributions effectively. Here's how:

1. Update Records: Ensure your payroll system is updated with the correct super fund details for each employee.
2. Regular Contributions: Make regular super contributions to the stapled fund or the employee's chosen fund.
3. Compliance Checks: Regularly review your payroll processes to ensure compliance with superannuation guarantee requirements.

Best Practices for 2024:

• Reconciliation: Regularly reconcile your superannuation payments with the fund records to catch any discrepancies early.
• Stay Informed: Keep up with any changes to superannuation laws and requirements through the ATO's updates and industry news.

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Managing stapled super funds is an ongoing responsibility that requires diligence and attention to detail. By understanding stapled super, integrating checks into your onboarding process, and managing contributions effectively, you can ensure compliance and provide a seamless experience for your employees.

Stay ahead in 2024 by leveraging tools like Microkeeper to streamline your payroll and superannuation process. For more information on how to maximise your software potential, check out our latest blogs or contact our support team.