Enrolling new employees
It is important to have established processes put in place for managing employee super. Here we provide some general tips.
When enrolling new employees, first determine whether or not they are eligible for super contributions. Some employees such as contractors, non-resident employees, temporary foreign workers and employees under the age of 18 may not be eligible.
It is important to have a sound process in place, as failing to meet your employee super obligations can incur fines from the ATO. You need to be aware of some of the key things which are listed below.
- Have you established which employees are eligible for superannuation contributions?
- Have you established processes for ensuring new employees receive a standard choice form within 28 days of commencing employment?
- Have you passed on employee Tax File Numbers (TFN) to their super fund within 14 days of receiving a TFN declaration form?
- What sort of information do you want to provide about your default fund?
- Will the payroll area be able to process the change to an employee’s nominated fund within two months of receiving a valid completed choice form?
- Does the workplace agreement(s) covering your employees stipulate the fund to which superannuation guarantee contributions must be made?
More information on what, if any, award or agreement covers your employee can be found at the Fair Work website.
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