Employees can now easily select their employer's default super fund
Finally, some positive news regarding super! Let’s forget about how complex and controversial this topic has been in the news recently and instead take joy in another new KeyPay feature that will completely automate how employers acquire employee super information.
Let’s break down the legal requirements first:
- Employers must nominate a default super fund to pay into for an employee that cannot or does not choose their own fund.
- Employees must be provided with a Standard Choice Form within 28 days of their start date, unless the employee has already provided the employer their super details.
- An alternative to the Standard Choice Form can be used however such alternative must cover all the information that the Standard Choice Form covers.
In KeyPay, employers automatically capture employee super details by:
- Getting new employees to complete the employee self setup process; and
- Allowing existing employees to edit their super details directly from the employee portal.
The only piece missing from this process was the ability for employees to choose their employer’s default super fund when completing their details. We’re happy to say that they now can!
So what’s changed?
Businesses can now configure their default super fund on a per employing entity basis within the platform. This then allows employees to choose the employer’s default super fund when adding or updating their super details via the platform.
How does an employer set up their default super fund?
Setting up a default super fund is super simple! Via the new Superannuation screen, search for the super fund from a pre-defined list of compliant super funds, add in the telephone and website details and you’re done.
The phone number and website info are not compulsory fields. We do, however, strongly recommend you fill them in as the Standard Choice Form includes this information.
Other flexible setup options include the ability to:
- Elect more than one default super fund for the company; and
- Apply a different default super fund for each employing entity set up in the business.
How do employees get to choose their employer’s default super fund?
When a new employee completes their details via the employee self setup process and chooses to have contributions paid into the employer nominated fund, the super fund(s) will be listed as follows:
Once the fund is selected, the employee can simply proceed to the next step without entering a fund member number. (Obviously, there is no member number as a new account will need to be set up for the employee!).
Employees can also view, add and edit (depending on permission settings) their super details via their employee portal:
As you can see from the above image, there is no member number stated. We have provided the flexibility in this scenario as we acknowledge the fact the super fund will need to set up an account and member number for the employee – a practice that does not happen immediately.
Can the employer select their default super fund on behalf of an employee?
Yes they can!
The employer can assign the default super fund against an employee who is added either via the employee import or employee wizard. This is particularly useful when an employee has not provided any super fund details.
Another exciting benefit of this feature pertains to businesses processing automated super payments. How annoying and time consuming is it having to chase up employee super details in order to submit a batch? Well scrap that.. All you need to do now is assign the default super fund against any employee with no super details and you’re done!
So, make sure to take advantage of this new feature! Not only does it allow businesses to throw out (and by throw out, I mean recycle) any Standard Choice Forms; it completely automates and simplifies an otherwise manual and laborious process of information gathering.
Disclaimer: The information in this article is current as at 1 June 2022, and has been prepared by Webscale Pty Ltd (ABN 70-154-693-955) and its related bodies corporate (KeyPay). The views expressed in this article are general information only, are provided in good faith to assist employers and their employees, and should not be relied on as professional advice. The Information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or fit for the purpose for which it is required. KeyPay does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising either directly or indirectly as a result of reliance on, use of or inability to use any information provided in this article. You should undertake your own research and to seek professional advice before making any decisions or relying on the information in this article.