Being an employer can be a minefield, particularly when it comes to onboarding new staff.
We understand that for businesses, the employment process is one that takes considerable time, money and resources, and often seems like an endless amount of paperwork and compliance.
With constant changes and updates, navigating your obligations as an employer isn’t easy, but you don’t have to do it alone. The PCR Accounting & Advisory team can guide you through the process and help you with any hurdles to make sure all your eggs are in the right basket.
As many employers may already know, one of the initial steps to hiring new staff is having the correct super fund details in place, so you can pay employees super. However, there is to be a new step added to the process of sorting out superannuation for new employees.
Superannuation can be complex if you are unsure about the ins-and out, but here at PCR, we’re about helping your business run smoothly and efficiently.
The new step isn’t anything to stress about, so here’s a brief run-down of the updated process.
Currently, employees would either select their chosen fund, or you would pay their superannuation contribution into your default fund.
However, from 1 November, when new employees start, you may have an extra step to comply with the choice of fund rules.
If a new employee doesn’t choose a super fund, you may need to request their ‘stapled super fund’ details from the Australian Tax Office (ATO).
A stapled super fund is an existing super account that is linked to an individual that follows them as they change jobs.
The introduction of the new step aims to reduce account fees by stopping new super accounts from being opened each time someone starts a new job.
Most of the time, it’s young people without a chosen super fund, but it can also affect other members of the workforce, which is why this change is so important to ensure they are not unnecessarily paying fees and are able to manage their superannuation with one fund.
Fortunately, the new step will be straightforward as you can simply request the stapled super fund details for new employees through the ATO website here.
The best way to prepare for the change is to review and update the access levels of your authorised representatives on behalf of your business through ATO Online Services.
This will also protect the personal information of your employees and make the process quick and seamless come the beginning of November.
If you’d like assistance with organising your business superannuation or have any questions regarding this change, you can speak to our expert team today on 03 9847 7516. You can also explore our range of services to find out more.
Owner of PCR Accounting & Advisory, Peter Marmara-Stewart is a top-tier accountant and financial advisor dedicated to helping clients reach their business goals and achieve financial freedom. Peter is highly regarded for his client-focused approach and entrepreneurial spirit, catering to a diverse range of professionals across a wide scope of industries all across the country. Peter’s expertise can help you plan effectively, set goals, maximise profits and protect your assets. Get in touch today on (03) 9847 7516.