From 1 November 2021 , the Your Future, Your Super reforms mean if you have new employees start and they don't nominate a super fund for their SGC payments, you may have to take an extra step in order to comply with ATO choice of fund rules. This step involves contacting the ATO to request the employee's 'stapled super fund' details from them (the ATO).
A stapled super fund is an existing super fund linked (stapled) to an individual employee so that fund follows them as/when they change jobs. The aim being to reduce account fees and to avoid new super accounts being opened every time an employee starts a new job. Up until 1 November , if an employee failed to nominate a fund you may have simply signed them up to your default fund - with the new rules, you need to determine first if the employee already has a fund, which can be done by contacting the ATO.
For super payment compliance, it is important that this process is followed - so it might be time to review your current employee onboarding procedures.
More information is available from ASIC in their INFO 89 Factsheet and the ATO has a reference guide.
MYOB has digital onboarding for small and medium businesses with MYOB Team and both Xero and QBO have articles on employee onboarding. In the second stage of these reforms the ATO will provide a service for employers that don't have access to tech like MYOB Team.
