Verification Process for Employers and Consultation with Accountants in Sydney
The government has just passed the Your Future, Your Super legislation, which will take effect on 1st November 2021.
Starting from that particular date, employers based in Sydney will be required to verify with the ATO whether their employees have an established super account, commonly referred to as a ‘stapled super fund,’ if they haven’t made a selection. This verification process is essential for the purpose of depositing the employee’s super guarantee. To fulfil this obligation, employers must consult with accountants in Sydney to ensure compliance.
Handling Superannuation Contributions When No Standard Choice Form is Returned Form
If the employee does not return a superannuation standard choice form:
- The employer must make super payments into an existing (“Stapled”) superfund of a new employee, if they have one, as from the start date of the legislation (proposed to be 1st November 2021);
- An employer (or their agent) will need to:
- Access ATO Online services; and,
- Enter essential information about an employee (Name, Tax File Number, Date of Birth).
- ATO will return details of existing funds that the employer must use, and
- If the ATO system returns no existing fund, then the existing super choice obligations remain in place (i.e., pay into the employer’s default fund).
For more information on this upcoming change, see the ATO link here.
If you have any queries in this regard, don’t hesitate to contact us.
Kreston Stanley Williamson Team
*Correct as of 29 September 2021
Disclaimer – Kreston Stanley Williamson has produced this article to serve its clients and associates. The information contained in the article is of general comment only and is not intended to be advice on any particular matter. Before acting on any areas in this article, you must seek advice about your circumstances. Liability is limited by a scheme approved under professional standards legislation.
