If you’re at the stage of business where you are expanding and hiring, congratulations! Employing staff is a big milestone, but with it comes many new responsibilities.
As you continue to grow your business, responsibilities will usually grow as well. Entering this exciting new stage can be scary and confusing without the correct advice, so our team of small business accountants are here to guide you and help you navigate the financial complexities, challenges and tax compliance needs of employing staff.
As an employer, it’s your responsibility to know your obligations so you need to be across your business operations, processes and staff. It’s important to remember that “I didn’t know” is not a legitimate excuse if you don’t meet your legal and ethical requirements as an employer and business owner.
Read on to learn about some of the key responsibilities of an employer and what you will need to do in order to comply with the Australian Taxation Office (ATO) and FairWork, while also providing a great workplace for your staff.
What do I need to do before I begin employing people?
- Consider what capacity you will be employing people (e.g. full-time, part-time, contract or casual).
- Register for PAYG Withholding.
- Register for Fringe Benefits Tax (if applicable).
- Register and apply for Workcover Insurance.
- Speak to our team to ensure that onboarding new staff is financially viable and sustainable.
What am I required to give my employees when they first begin?
- A Tax File Number Declaration Form (you can download this online or pick up a printed copy from your nearest post office).
- A Standard Choice Form. This allows your employee to select what Superannuation Fund they want their superannuation contributions to go into. This form must be received back in 28 days. You can also read our blog on employee Superannuation for more information.
- An Employment contract. This should include salary and super package details, leave entitlements, award, job responsibilities and any other relevant company guidelines and expectations.
What are my ongoing obligations?
- Withhold tax (PAYG Withholding) from your employees wage/salary.
- Pay the Superannuation Guarantee to your employees nominated Superannuation Fund. The dates for paying Superannuation are the 28th January, 28th April, 28th July & 28th
- Report & pay the PAYG Withholding to the Australian Taxation Office.
- Report & pay Fringe Benefits Tax (if applicable).
- Provide PAYG payment summaries to your employees and lodge an annual report.
If you continue to grow your business and workforce, you may be liable for Payroll Tax. The limits and costs of Payroll Tax vary from state to state, so contact us to discuss your business tax requirements and what applies to you.
For a thorough employee checklist and guidance for the hiring process, head to the FairWork Hiring Employees page or give us a call and we can put you in touch with one of our specialist partners to provide personalised advice.
Need more assistance with employer responsibilities? Speak to Peter and the team at PCR Accounting & Advisory on 03 9847 7516 and see how we can help you start your journey as an employer on the right foot.
Owner of PCR Accounting & Advisory, Peter Marmara-Stewart is a top-tier accountant and financial advisor dedicated to helping clients reach their business goals and achieve financial freedom. Peter is highly regarded for his client-focused approach and entrepreneurial spirit, catering to a diverse range of professionals across a wide scope of industries all across the country. Peter’s expertise can help you plan effectively, set goals, maximise profits and protect your assets. Get in touch today on (03) 9847 7516.