Super Fund Compliance – What Employers Need to Know
Here’s how to meet your obligations and avoid penalties!
As an employer, you’re likely familiar with the challenges of managing your super requirements. There’s legislation to understand and obligations to meet. And if you fail to meet those obligations, the Australian Tax Office (ATO) could impose strict penalties.
Add to the mix the changing regulations on super (like stapling¹), and it can be a lot for many employers to manage.
Enter Beam’s new Super Fund Onboarding – a better way to onboard employees and their super funds. Here’s everything you need to know to make meeting your obligations simpler.
The challenges employers are facing
Employers are legally obligated to pay super, but unfortunately it can be a difficult task for small to medium businesses.
“We know many employers still rely on manual processes and paper forms when bringing on new employees and when stapling obligations were introduced, we realised this would add another layer of complexity to the process,” Beam Product Manager Matt de Largie explained.
It’s not just stapling employers need to consider either. Interpreting industry awards, understanding policies and contracts and navigating payroll systems (not to mention understanding work and individual employee circumstances) are all important aspects of super compliance.
Keeping on top of all these requirements can put pressure on you or your payroll team, which can lead to potential errors when making super payments. In fact, it might surprise you to know that overpayments are just as common as underpayments across the industry².
While there is a lot to consider, meeting these obligations as an employer is key, as it helps to not only maintain positive relationships with your employees but also to avoid penalties from the ATO.
When it comes to super, the ATO takes compliance seriously. When dealing with compliance issues, the ATO can direct employers to pay unpaid super, to take educational courses about super obligations or if necessary, impose penalties³.
Choice of fund is one example of an employer obligation under the Super Guarantee (Administration) Act 1992. Employers may find themselves in breach of this regulation if they don’t meet choice of fund obligations, such as:
- Providing new employees with the Standard choice form within the time frame set by the ATO
- Confirming an employee’s stapled fund with the ATO if they don’t nominate a preferred fund
- Making payments into an employee’s chosen fund (or conversely, charging them a fee to pay into their fund choice)
As you can imagine, having an effective onboarding process makes it much easier to meet these obligations. This is where Super Fund Onboarding comes in.
How employers can make light work of their super obligations with SFO
SFO was created to save you and your employees time by providing a more streamlined employee onboarding experience.
“We wanted to eliminate as much of the employer’s burden as possible. We created SFO to help them manage their super obligations with a simple digital solution that’s efficient, free and provides a better onboarding experience for not only them, but their employees as well,” explained Matt de Largie.
SFO provides a fully trackable employee onboarding process that helps you meet your choice of fund obligations simply and compliantly so you can worry less about super and focus more on your business.
Benefits of SFO
- Automated onboarding notifications. Send personalised SMS and email notifications to your employees so they can complete their onboarding journey online.
- Minimise risk and errors. Beam’s SFO allows your employees to validate their information as part of the process – reducing inaccuracies.
- Make light work of your obligations. Collect all the information you need in one place, to make meeting your obligations easier.
Let SFO help you with your employer obligations!
While there’s a lot to consider, meeting your super obligations as an employer doesn’t have to be difficult. SFO is here to support you in onboarding your new starters so that you can feel confident in managing your super obligations!
Find Out More About Super Fund Onboarding