We have 2 new employees that have provided incorrect super fund details. We had submitted their superannuation contributions well before the due date. The funds have now returned the contributions, after the due date, advising the member can't be found. One of the employees has provided updated information which has also turned out to be incorrect. The other is having trouble finding the time to look for the details. We'd like to request stapled super fund details from the ATO rather than just paying into our default super fund. Per the ATO info we can do this if the employee is eligible to choose a fund but has not done so. These guys have choosen a fund, but the funds have not accepted. Can we treat this as a choice not having been made and request stapled fund details? At least this way it will go to an existing fund, which makes sense to me.
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Yes, in this situation, you can request stapled super fund details from the ATO, even though the employees have technically made a fund choice — because their chosen funds did not accept the contributions due to incorrect or invalid details.
Here's why:
According to the ATO’s guidance, you are required to request a stapled super fund if:
- A new employee does not choose a super fund, and
- You need to make super guarantee (SG) contributions for them.
While your employees attempted to make a choice, their chosen funds have rejected the contributions — which means there is no valid super fund to pay into. From a compliance standpoint, you are unable to fulfill the choice because the funds can't be matched to the employees.
This effectively puts you in the same position as if no valid choice had been made, and therefore: You are permitted to request stapled super fund details from the ATO.
This approach is also preferable to paying into your default fund, as the stapled fund is more likely to be an existing fund that the employee has used in the past.