– Payroll & Superannuation Employer Update
Super fund stapling for employers
What stapled super is, what you need to check when onboarding new employees, and how to authorise Flare if you choose to.
You may have received an email from MYOB asking you to authorise Flare to conduct searches in MYOB Payroll during employee onboarding. Authorising Flare to complete your stapled fund look up is optional, however requesting stapled super fund details for new employees is not. It is important to note that a stapled super fund check is required when an employee does not nominate their own super fund during onboarding.
What is stapled super
A stapled super fund is an existing super account linked to an employee that follows them between employers, and prevents multiple funds being opened for them.
When a new employee is being onboarded in MYOB, you currently give them the option to enter their own fund details or choose your default fund to make payments into.
Why is it beneficial for the employee and no detriment to the employer
This process basically allows them to have their own super details carry forward from previous employment rather than having new superannuation funds with each employer. Stapled super helps them not to have to remember their details (it can be searched).
Requesting a stapled super fund is also a requirement when onboarding that has previously been a separate manual task. MYOB has incorporated this process into the onboarding workflow to help employers meet their obligations under current superannuation legislation, including upcoming Payday Super requirements.
What happens when you onboard a new employee
Step 1 — Offer a choice of fund
When a new employee commences employment, they must be provided with a Standard Choice Form, either through paper-based or digital onboarding. If the employee nominates their own super fund, contributions should be made to that fund and no further action is required.
Step 2 — Check for stapled fund
If the employee does not nominate a fund, you cannot automatically contribute to your default fund. You must first determine whether the employee has a stapled super fund. There are two ways to do this:
Method 1 — Automated lookup. Software solutions such as Flare can automatically perform a stapled fund lookup during onboarding. If a stapled fund is found, the employee will be presented with this option before your default fund can be selected.
Method 2 — Manual ATO lookup. Employers can manually request stapled super fund details through ATO Online Services using the employee’s information.
It is important to note that you can only request stapled super fund details after you have submitted a TFN declaration for an employee or you have lodged a Single Touch Payroll pay event that includes them. This means it cannot be actioned prior to the employee completing their onboarding.
Step 3 — If no stapled fund is found
This situation is common for employees entering the workforce for the first time. If the employee has not nominated a super fund and no stapled super fund exists, contributions can then be made to the business’s default super fund.
How to proceed
Unfortunately we cannot do this step for you. If you do decide to opt into authorising Flare for your stapled super fund lookups, the process needs to be completed using your ATO Access Manager. To complete the authorisation, your Principal Authority or Authorised Administrator should:
- Sign in to ATO Access Manager.
- Open Who has access to my business and select Appoint new business.
- Add Flare HR Pty Ltd using ABN 46 607 120 892.
- Turn on View, Prepare and Lodge for the Employee commencement form.
- Fill out the confirmation form once you have completed authorisation.
It’s a time saver.
Interaction with Payday Super
Employers have up to 20 days for your new employee to receive their very first super payment linked to payroll. MYOB + Flare is trying to help speed up the connectivity through the software to help you meet your obligations.
Please contact the office if you have any questions or concerns.
