As an employer, what do you need to do?
Lots! We’ve created a checklist with links to give you a headstart.
Before making your first hire you need to do a bunch of stuff.
https://www.ato.gov.au/Business/Engaging-a-worker/Before-you-hire-your-first-worker/
– You’ll need to register for Pay As You Go Withholding (Group tax in the old lingo). That is the amount of tax you withhold when you process wages each week/fortnight/month from your employee’s pay packet (or EFT transfer – who still uses yellow envelopes?!)
<https://www.ato.gov.au/Business/Registration/Work-out-which-registrations-you-need/Taxation-registrations/Pay-as-you-go-withholding/
– Workers Compensation – this is state based and you’ll need an insurance policy for each state you have workers in. Naturally the rules are different in each state.
https://www.fairwork.gov.au/employment-conditions/workers-compensation
– Default super fund – you need to have a preferred super fund in case a new employee doesn’t have a fund and can’t be bothered to make their own decisions. Signing up as an employer with a fund will mean agreeing to the fund terms and conditions which may be more rigorous than ATO legislation.
https://www.ato.gov.au/business/super-for-employers/setting-up-super-for-your-business/select-your-default-super-fund/
– Then you need software to process and report the wages – calculate the gross payment, number of hours of leave earned, how much tax to withhold and how much super you need to accrue. (Currently super need to be paid at least quarterly, unless your default fund demands payments every 4 weeks or month). You need to submit payroll info to the ATO every time you pay your staff.
https://www.ato.gov.au/business/single-touch-payroll/how-to-report/
– As your business grows, you may need to register for payroll tax. Again, this is state based, so check the rules for the states in which your business operates.
https://business.gov.au/Finance/Taxation/Payroll-tax
– Fringe Benefits Tax might be added to the mix if you compensate your staff with non cash payments or rewards (company car, gym membership – ask your accountant for more info and to register you.)
https://www.ato.gov.au/Business/Fringe-benefits-tax/FBT-registration,-lodgment,-payment-and-reporting/Registering-for-FBT/
Now that you’ve done the ground work, time to search for the perfect employee. If you’ve found an adequate one, you need to start the onboarding / hiring process. You need to collect and store sensitive info safely. Other info may need you to sight but not store. How do you safely collect data? Not by email! Hacking is a serious and comment threat. Use a secure app or if you like pen and paper, you’ll need to lock it up in a filing cabinet.
– Employment contract – a verbal one isn’t worth the paper its written on. Check if your new potential employee is covered by an award, or your industry body may have templates to get you started. You’ll never win a dispute without one and your new worker is unlikely to believe you are professional and competent without one.
https://www.fairwork.gov.au/employment-conditions/contracts
– A Tax File Number declaration needs to be completed by your new employee so you know how much tax to withhold from each pay – its not one size fits all. TFNs are super sensitive, not something that should be emailed around.
https://www.ato.gov.au/Forms/TFN-declaration/
– Super choice form to collect details of their existing fund or to let you know that you need to chose for them. Certain funds may not accept payments from any employer (eg. government pensions are only for government employees, being paid by the government – you can’t add funds to an employees existing account)
https://www.ato.gov.au/Forms/Superannuation-%28super%29-standard-choice-form/
– Right to work. You may need to confirm if, and how much your worker is entitled to work, so you might need to sight their passport and visa. Or perhaps your employee needs qualifications or tickets to work in your industry.
https://immi.homeaffairs.gov.au/visas/employing-and-sponsoring-someone/hire-someone-in-australia
– Proof you have supplied the Fairwork Information Statement (casual employees also need Casual Employment Information Statement).
https://www.fairwork.gov.au/employment-conditions/national-employment-standards/fair-work-information-statement
https://www.fairwork.gov.au/employment-conditions/national-employment-standards/casual-employment-information-statement
Who says being an employer is hard work? Just a few simple steps and you’re up and running! 😲😆
Helpful info and videos can be found here: https://smallbusiness.fairwork.gov.au/help-for-small-business
Couldn’t be less interested? Get an expert onboard (probably not a woolies payroll expert – we know they’ve cocked it all up a bit).
