As an employer, ensuring your team has completed their superannuation standard choice forms is crucial. But what happens if an employee doesn’t return their form? Here’s your guide to navigating this scenario effectively.
Understanding the Superannuation Standard Choice Form
The superannuation standard choice form allows employees to nominate their preferred super fund. It’s a critical part of onboarding, ensuring that super contributions are made to the correct account. However, when an employee fails to return this form, you must know the following steps to stay compliant and manage their super correctly.
Step-by-Step Guide for Employers
- Initial Request and Follow-Up
- Provide the super choice form to new employees as part of their induction pack.
- If the form isn’t returned within the first few days, follow up with a gentle reminder. This can be done via email or during a face-to-face meeting.
- Set a Deadline
- Set a clear deadline for returning the form. Inform employees that failing to meet this deadline will result in default super arrangements.
- Check for a Stapled Super Fund
- If the employee does not return the form by the deadline, you must check if they have a stapled super fund. A stapled super fund is an existing super account linked to an employee, which follows them when they change jobs. You can request this information from the Australian Taxation Office (ATO).
- Use the Default Fund if No Stapled Fund Exists
- If the employee does not have a stapled super fund, you must contribute to your company’s default super fund. Ensure that this default fund meets the MySuper requirements and offers employees a basic, low-cost option.
- Document Your Actions
- Keep records of all communications and attempts to obtain the super choice form from the employee. This documentation is essential for compliance and can protect you from any disputes.
- Notify the Employee
- Inform the employee in writing that their super contributions will be directed to the default fund due to the non-return of the choice form. Provide details of the default fund and how they can later change their super fund if they choose to.
- Monitor and Remind
- Periodically remind employees of their ability to change their super fund by completing the standard choice form. This can be included in annual reviews or during payroll updates.
Why Compliance Matters
Adhering to superannuation laws is not just about avoiding penalties; it’s about ensuring your employees’ future financial security. Following these steps demonstrates a commitment to compliance and care for your team’s welfare.
Tips for Smooth Super Management
- Educate Employees: Regularly educate your team on the importance of superannuation and their role in managing it.
- Streamline Processes: Use digital tools to streamline the distribution and collection of super choice forms.
- Stay Updated: Keep abreast of changes in superannuation legislation to ensure ongoing compliance.
By proactively managing the process and clearly communicating with your employees, you can handle the non-return of super choice forms smoothly and maintain compliance.
