Default super fund
Why do I need a default super fund? I'm really confused. I have new employee who already has a chosen super fund that they want to use for contributions.
If I use the self-boarding system to set him up in MYOB Business, it says I need to select a default super fund, obtain an employer membership number and provide these details to the new employee who can then decide if they want to use this default fund, or nominate their own.
I contacted Australian Super to see if I could use them as a default super fund and they told me I only need to have a default fund if the employee doesn't have a nominated fund.
So now what do I do with the onboarding stuff if my new employee already has his own super fund, do I no longer need to nominate a default fund? Can I skip this whole onboarding default super fund stuff if I just enter his super details manually into the system?
Hi MJ7 - thanks for your question.
The ATO requires every employer to have a default super fund (here are the ATO guidelines) which your new employees can choose if they don't already have a super fund.
When a new employee goes through the self-onboarding process, they can choose their existing super fund.
I hope this clarifies things for you!
Adrian
