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:

•   offer eligible employees a choice of super fund;
•  if the new employee does not choose a super fund, the employer will need to request stapled super fund details using Online services for  business; and
•  pay super contributions into one of the following:

–    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.